• Skip to primary navigation
  • Skip to main content
  • Skip to footer

Grand County Real Estate

| Colorado RE/MAX Red

  • Search Properties
    • Featured Properties
    • Explore Local Areas
  • Communities
    • Granby
      • Grand Meadows
      • Cabin Village
      • Condo / Townhomes Developments
    • Grand Lake
    • Hot Sulphur Springs / Parshall
      • Aspen Canyon
      • Copper Creek
    • Kremmling
      • Big Horn Park
      • Blue Valley Acres
      • Gore Lakes
      • Old Park
      • Rabbit Ears Village
      • Spring Creek Ranch
    • Winter Park / Fraser / Tabernash
  • Buyers Resources
    • Mortgage Calculator
    • Historical Sales Data
    • Manufactured vs. Modular
    • Local Vendors
  • Sell My Property
    • Sold Properties
    • What’s My Home Worth?
    • Preparing Your Home for Sale
    • Seller’s Road Map
    • Historical Sales Data
    • Manufactured vs. Modular
    • Local Vendors
  • About Rebecca
    • Blog
    • Testimonials and Reviews
  • Contact

Frist-Time Homebuyers Savings Accounts

January 26, 2018 by Rebecca Guthrie

Real Estate 101: By the agent who lives here, plays here, owns here!

FIRST-TIME HOME BUYER SAVINGS ACCOUNTS

FHSAs are a great way for future homeowners to start saving early for the costs of buying a home.

A First‐time Home Buyer Savings Account allows any Coloradan to set aside up to $50,000 toward the costs of closing on a new home. The earnings on those funds — interest and capital gains — are free from Colorado state taxes forever.

These accounts are simple and easy to set up. Not only can you open a new one, you can also designate almost any existing account as an FHSA. To create an FHSA, you simply include a form when you file your state taxes. (It will indicate that you should not be taxed on any earnings — e.g., interest or capital gains — because of the account’s FHSA status.)

After you use the money toward the closing costs on a first home (yours or someone else’s — see below), you send in a different form to the Department of Revenue showing that the funds were put toward an “eligible cost.”

Q: How much can I put in a FHSA account?

A: You can contribute up to a total of $50,000 in principal, and the account can grow in value up to $150,000. There will be an annual contribution cap of $14,000 ($28,000 if filing jointly). There is no limit on how long the account can exist.

Q: What kinds of accounts can be FHSAS?

A: Almost any account you have with a financial institution: mutual funds, CDs, brokerage (stocks, bonds, etc.), money markets, insurance, even a savings account. FHSAs can also include individual stocks.

Q: How much can I put in a FHSA account?

A: You can contribute up to a total of $50,000 in principal, and the account can grow in value up to $150,000. There will be an annual contribution cap of $14,000 ($28,000 if filing jointly). There is no limit on how long the account can exist.

Q: What can I use the money for?

A: A FHSA account can be used to pay for just about anything related to closing on a home — anything included on the settlement statement: closing costs, inspections, lender fees, etc. These are all considered “eligible costs.”

Q:What is considered a first-time home buyer?

A: A FHSA account can be used to pay for just about anything related to closing on a home — anything included on the settlement statement: closing costs, inspections, lender fees, etc. These are all considered “eligible costs.”

Q: Can I use the money to pay for someone else’s closing costs?

A: Yes. As long as the person you’re giving the money to (e.g., child, grandchild, niece, and even a close friend) is a first‐time homebuyer

Q: Can I use my FHSA funds if I’m buying a home with someone who is not a first-time buyer?

A: Yes, as long as you qualify as a first‐time buyer.

Starting in 2017, consumers can apply for a first-time homebuyer savings account in the state of Colorado. Please check back http://www.coloradorealtors.com/fhsa/ for more information on participating financial institutions.

I am excited to provide for you this weekly column. Please call if you have any questions or would like more information:

Rebecca Guthrie, Broker / Owner
(970) 485-4141
[email protected]

ARTICLE ORIGINALLY APPEARED ON COLORADO ASSOCIATION OF REALTORS WEBSITE AND HAS BEEN REPRODUCED WITH PERMISSION.

Filed Under: Homeowner Advice Tagged With: Buying, Get Advice, Savings Account

Footer

Grand County Real Estate

RE/MAX RED
404 Park Ave / P.O. Box 496
Kremmling, CO 80459
Phone: 970-485-4141

Follow Us

  • Facebook
  • Instagram
  • LinkedIn
  • Pinterest

CONTACT REBECCA


Sorry we are experiencing system issues. Please try again.
  • Search Properties
  • Communities
  • Buyers Resources
  • Sell My Property
  • About Rebecca
  • Contact

Copyright © 2023 Grand County Real Estate | All Rights Reserved
Made With ⚡ By imFORZA
Equal Housing Opportunity Logo
"All information deemed reliable, but not guaranteed and subject to change without notice."