Experience with Missouri's First-Time Homebuyer Savings Account?

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careerdata
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Joined: Sat Sep 09, 2017 7:12 pm

Experience with Missouri's First-Time Homebuyer Savings Account?

Post by careerdata »

Good evening!

Does anyone have any experience with Missouri's First-Time Homebuyer Savings Account? It appears it was launched in 2019 so it is relatively new. We have about $40k set aside so far for a down payment but we probably need another $40k to $60k at least in the area we live in to be able to make a 20% down payment and still have money set aside for closing costs and property taxes for the first year. So we are at least several years away from being in a financial position to make a home purchase.

The limited program material on the web says you can contribute up to $3.2k per year and get a $1.6k deduction on your Missouri state income taxes. Interest earnings are not taxable. We will keep saving in our brokerage account and savings account to build up the additional reserve needed but I was hoping someone had some practical experience with this program to see if it makes sense for us to contribute the $3.2k this year as another source for the future downpayment and closing costs.

Thanks in advance for your consideration and feedback!

Regards,

Joe
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