First Time Homebuyer Savings Account
Good news for Iowans looking to purchase their first home. Iowa, the “Field of Opportunity” state has signed into law a new savings account program supporting first time homebuyers, known as the First-Time Homebuyers Savings Account. This account provides a secure and efficient way for individuals to save towards the purchase of their first home. With competitive interest rates and flexible deposit options, customers can steadily build their savings while benefiting from the expertise and support of Iowa Falls State Bank’s experienced team. Whether it’s setting aside a portion of their paycheck or depositing lump sums, customers have the freedom to customize their savings approach according to their financial goals.
State of
Iowa
Iowa is taking proactive measures to help state residents realize the dream of home ownership.
Tax
Benefits
Contributions to these accounts may be tax-deductible, meaning you can reduce your taxable income by the amount you contribute.
Secured
Storage
The FHSA we offer is FDIC-insured and backed by the United States government up to the maximum allowable limits.
Interest
Rates
First Time Homebuyers Savings Account offer a higher interest rate than an average savings account.
Interest Rate* | APY** | Min. Balance | 2.00% | 2.02% | $100 |
|---|
*Variable interest rate,
**APY= Annual Percentage Yield is accurate as of 12/17/2024.
The Basics of the First Time Homebuyers Savings Account
A special type of savings account created by the Iowa legislature to help Iowans save for their first homes. This account offers tax advantages for individuals up to certain threshold for either joint or single account owners. You can find the current thresholds here.
To open the account and avoid maintenance charge you must deposit and maintain at least a $100 balance. An excess withdrawal fee of $1.00 will be charged for each debit transaction (withdrawal, check paid, automatic transfer, or payment out of this account) in excess of 6 during a calendar month.
- Down Payments
- Loan Origination Charges
- Appraisal Fees
- Flood Certifications
- Title Charges
- Deed Charges
- Other closing cost listed on the closing disclosure
This is a great account for any Iowan who has never purchased, owned, or part-owned a home in Iowa or any other state for 3 years prior to account opening. We strongly recommend you seek the guidance of a tax or legal professional to ensure you revive the full tax benefits available to First-Time Homebuyer Savings Account holders.
Interest will compound and credited back to account every month. At our discretion, we may charge the interest rate on your account.
To open the account and avoid a $1.00 per month maintenance charge you must deposit and maintain at least a $100 balance.
An excess withdrawal fee of $1.00 will be charged for each debit transaction (withdrawal, check paid, automatic transfer, or payment out of this account) in excess of 6 during a calendar month.
Yes, as an “account holder” who established a savings account, you can choose a qualified beneficiary. If you are an Iowa taxpayer, you can also benefit from the state deduction.
We strongly recommend you seek the guidance of a tax or legal professional to ensure you receive the full tax benefits available to First-Time Homebuyer Savings Account holders.
Identification Required
You will need one of each primary and secondary forms of identification to open a First Time Homebuyers Savings Account at our financial institutions.
● Unexpired Driver’s License bearing the individual’s photograph
● Unexpired Passport bearing the individual’s photograph
● Unexpired State Photo Identification Card
● Current Military Identification Card
● Alien Registration Card
● Certified copy of birth certificate for persons 16 or younger unable to present other acceptable documents and a student ID card
● Social Security Card
● Medicare, Medicaid or other insurance card
● Voter Registration Card
● Property Tax Bill
● Major Credit Card
● Matricula Consular Card (Mexican National ID Card)
First Time Homebuyers Savings Account
Are you ready to embark on the exciting journey of homeownership? Our First-Time Homebuyers Savings Account is designed to empower you every step of the way. Additionally, the bank provides educational resources and guidance to help first-time homebuyers navigate the complexities of the home buying process with confidence. With Iowa Falls State Bank, the path to homeownership becomes more accessible and manageable for individuals embarking on this important milestone in their lives.
This is general information regarding our First-time Homebuyer Savings Account.
Please read our FAQ for more details, or please refer to 2017 Iowa Acts Senate File 505 for definitive legal guidelines and instructions.
Still not sure if this account is right for you?
Stop in, give us a call at (641) 648 – 5171, or click here to fill out the form and we will reach out to you to help you find the best checking accounts for your needs!
The Patriot Act
Important Information About Procedures for Opening a New Account
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
What this means for you
When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. In addition, we may also ask to see your unexpired driver’s license or other identifying documents.
Account Opening for a Legal Entity
We are required to ask you for identifying information (name, address, date of birth, social security number, as well as identification documents) for:
➣ Each individual that has beneficial ownership (25% or more)
➣ One individual who has significant managerial control of the Legal Entity
If you are opening an account on behalf of a Legal Entity, you will be required to provide the appropriate documentation and to certify that this information is true and accurate to the best of your knowledge.