First Time Home Buyer Tax Advantaged Savings Account

By rbaxter@choicemortgage.com | July 12, 2022 |

If you’re a first time home buyer, you know that it’s very hard to save up enough for a down payment to buy a home. So that’s why I wanted to talk today about a very unique program that’s available in Colorado and most other states called a first time home buyer savings account program.

The cool thing about this program is that anyone can contribute to it, friends, family, employers, anyone who wants to help you to buy a home can contribute money to this account. The money can be invested in any type of investment. It doesn’t just have to be a traditional savings account. It can be invested in mutual funds or something else that could potentially grow faster. And any of the gains are not state taxable, they’re exempt from state capital gains taxes.

You’re not going to pay taxes on those gains, which is going to help that account to grow faster. This is a great way to save money for a down payment. I’ve heard of couples using this when they get married as a way for people to give them wedding gifts, they contribute to the account so that then they can buy a house with the money.

But there’s a lot of creative ways that you can use this. So if you have questions about this program or anything else related to buying a home for your first time, I’m happy to help you with that. Always happy to answer your questions. And so just give me a call, text or email and have a great rest of your day. 303-670-0137 or baxterteam@fairwaymc.com