Rep. Comstock Joins Reps. Coffman and Maloney In Introducing The First-Time Homebuyer Savings Account Act
Washington, D.C. – Last week, Congresswoman Barbara Comstock (R-VA) joined Congressmen Mike Coffman (R-CO) and Sean Patrick Maloney (D-NY), for the bipartisan reintroduction of H.R. 2802, the First-Time Homebuyer Savings Account Act.
“Buying a home is one of the best ways to lift people into the middle class and keep them there, which is why this bipartisan legislation is so important - it gives first time home buyers the tools they need to save and buy their first house,” said Rep. Comstock. “We have many young families settling into Virginia’s 10th Congressional District and the bipartisan First-Time Homebuyer Savings Account Act will help young families purchase their first home by making the down payment of a first-time purchase more affordable. This legislation will help more families achieve the American dream of homeownership.”
“The American dream of homeownership is getting harder and harder to attain for those starting out on their own these days, especially Millennials, because of the challenges involved in saving up for the down payment,” said Rep. Coffman. “The First-Time Homebuyer Savings Account Act is a straightforward and bipartisan solution to this problem. If we can help Millennials attain homeownership, this would not only be a wise financial move for them, but would have broader positive financial impact for our economy as a whole”
“With higher rents, student loan debt and a changing economy it is harder than ever for folks in the Hudson Valley – especially young people – to save for their first home,” said Rep. Maloney. “Buying a home is one of the best ways to lift people into the middle class and keep them there, which is why this bipartisan legislation is so important - it gives first time home buyers the tools they need to save and buy their first house.”
The First-Time Home Buyer Savings Account Act, seeks to help those trying to buy their first home. H.R. 2802 would amend the federal tax code to create 529-style savings accounts for first-time homebuyers. The goal is to take the highly successful 529 plan model, which provides parents a tax-advantaged means to save for their children’s college education, and apply it to another area where savings are equally important: buying a first home.
The bill will allow individuals to deposit up to $14,000 per year and married couples filing jointly up to double that amount per year, after taxes, into a first-time homebuyer account with a maximum lifetime investment of $50,000. The investment can grow up to $150,000 tax-free and there is no time limit on how long the funds may remain in the account. All limits are adjustable for inflation. The account is only available for use to make the down payment and pay the other fees and costs associated with the purchase of a first home.