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Our First-Time Homebuyer Savings Account is coming soon!

posted on Friday, December 15, 2017 in Community News

Image of a young couple stating 1st time homebuyer savings account with tax benefits 


This new program will help turn the American dream of homeownership into a reality! Beginning January 1st, 2018, we’ll be offering to qualifying Iowa residents this special savings account that earns interest and provides tax benefits.

The First-Time Homebuyer Savings Account is specifically designed for individuals who are preparing to purchase their first home, and it allows parents, grandparents or anyone to help save for the purchase or down payment of a new home. This special account offers benefits including a tax deduction for the account holder on their state income taxes up to $2,000 individually or $4,000 for married taxpayers filing a joint return. And, the interest grows tax-free.

The account holder and beneficiary of the account must meet qualifications. Iowa residents qualify as first- time homebuyers if they have not owned, individually or jointly, a single-family or multifamily residence for the prior 36 months.  A beneficiary must meet the qualifications when named as the beneficiary and when applying the money toward a qualifying purchase. The account must be opened for a minimum of 90 days and a maximum of 10 years with the funds used towards the purchase of a first home.

Now is a great time to save for one of the most important purchases of a lifetime! For more details about the First-Time Homebuyer Savings Account, visit Contact your tax preparer for details on tax benefits.

Northwest Bank is a $1.5 billion community bank that offers a full line of business, agricultural, mortgage, consumer deposit and lending services as well as wealth management services. Northwest Bank has offices located in Algona, Arnolds Park, Ankeny, Estherville, Fort Dodge, Humboldt, Le Mars, Milford, Sioux Center, Sioux City, Spencer, Spirit Lake, West Des Moines, Iowa and Omaha and La Vista, Nebraska.

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