A New Bill Could Mean Great Things if You’re Hoping to Buy a House

Pennsylvania’s first time homebuyers stand to benefit from a new bill (Senate Bill 1066) recently passed by the state senate. This bill will make it possible for people who have never purchased a home, or those who haven’t owned a home in three years, to put money into a special savings account toward the down payment and closing costs of a home purchase. An exciting and unique feature of these accounts will be that the contributions are tax deductible toward state taxes.

This sort of news could be the push many Pennsylvanians need to make the move toward home ownership. Most people agree that home ownership is a great financial decision, but certain obstacles keep potential buyers from following through. Rent prices are soaring higher and higher, creating a struggle for home ownership to become a reality. Coupled with some of the nation’s highest amounts of student loan debt, the state has seen a dramatic decline in home sales. Previously, 45% of Pennsylvania residents owned their homes. Since the financial crisis of 2009, that number has dipped to 32%. This bill was passed with hopes to help rectify those numbers.

This graphic demonstrates just how rent adds up for long term renters, that same amount of money could have gone toward paying down a mortgage. Senate Bill 1066 hopes to help buyers to move toward the more financially sound option of buying versus renting.

This savings program will give potential homeowners a chance to work toward their home buying goals while making contributions that are tax deductible, making the strain of saving money a bit easier.  Potentially making the dreams of home ownership a reality for many Pennsylvanians.

Another interesting feature is that parents and grandparents will be able to contribute toward these savings accounts on behalf of children and grandchildren. This will enable gifts to go toward future home ownership goals of family members.

This bill has been designed to be a boom to the Pennsylvania real estate market, and a great help to first time home buyers. If you’ve been hoping to save toward home ownership, but didn’t know where to start, this is a great first step. Not sure how much you need to save to purchase a home?  Contact us today and we’ll help match you to one of our preferred lenders that can answer all of your questions on how much to save, what you can afford and the mortgage process all around.

Photo via Rawpixel.com via Pexels.com