On Wednesday a new bill was signed into law, designed to help first-time home buyers tackle rising home prices and insurance rates. The Michigan First-Time Home Buyers Savings Program creates special tax-exempt savings accounts for people to accrue funds to use toward buying their first home.
People will be able to set aside money exempt from state sales tax as long as the maximum account balance does not exceed $50,000. Starting this year, those filing as single could receive up to a $5,000 yearly deduction, and those filing jointly could receive up to a $10,000 yearly deduction.
This will enable first-time homebuyers to have a larger down payment ready and make their offers more attractive in the current competitive market.