As experienced Bucks County realtors, we understand how low wages and mounting student debt can hold some Pennsylvanians back from accomplishing their dreams of purchasing their first homes. That is why we want to inform those who are struggling to save for their first homes about the newly passed Senate Bill 1066 and what it can do to help them overcome the financial obstacles to homeownership.
What is Senate Bill 1066?
PA Senate Bill 1066 is a piece of legislation that was sponsored by Senator Bob Mensch to create first homebuyers savings accounts for qualified Pennsylvania residents. The bill, which was recently passed, would allow eligible parties to open special savings accounts and take tax deductions for savings towards home buying expenses such as a down payment and closing costs.
How it Works & What it Means For First Time Homebuyers & Sellers
The program aims to help first-time PA homebuyers save up to $50,000 over ten years to put towards the costs associated with buying a new home. Any money that is deposited into the special savings account would be eligible to be deducted from the homebuyer’s state incomes. If participants of the program decided to remove any money from the account for non-approved expenses, they would be taxed with a penalty.
Current homeowners can benefit from the program as well because it allows for parents and grandparents to open up accounts for their children and grandchild thus putting future generations in a position for homeownership. Simply put, the new program will allow first-time homebuyers to save more money so that they can be better prepared for homeownership. Sellers will benefit as well by having a larger pool of qualified buyers to choose from when they are ready to put their homes on the market.
What Does This Mean for Pennsylvania?
Owning a home provides stability to not only growing families, but also the community. When a homebuyer decides to make the long-term commitment of purchasing a home, their investment benefits the entire community by strengthening its social well-being and economy. According to lawmakers, the new first-time homebuyer program is expected to have an estimated $68.8 million impact on the state’s economy and boost the state’s number of annual home purchases by as many as 4,000 within the state.
Those looking to purchase their first homes can enlist the help of Joseph Bograd and his team of experienced real estate agents in Buck County by calling 267-282-1721.