Last Tuesday on REALTOR® Day, HB 248, the First-Time Homebuyer Savings Account Bill, passed off the House floor at 7:30PM.  The sponsor of HB 248, Rep. Kyle South (R-Fayette), presented the bill to the body.  With several friendly amendments, the bill passed with a vote of 95-0-3.  House members from both parties went to the microphone in support of the bill that would help a first-time homebuyer save money for the purchase of home. 

“Statistics show that having a full down payment greatly decreases default rates on home loans and mortgages, and it provides for more stable finances and home lives,” South said.  “By creating these tax-free savings accounts, we can responsibly help countless Alabama families and individuals fulfill the dream of owning a home of their own.”

The leader of the House Democratic Caucus, Rep. Anthony Daniels (D-Madison) stated, “The First-Time Homebuyers Savings Account Bill will provide a much-needed resource to those that want to become homeowners but struggle with a down payment or other expenses associated with buying a new home.”

After final passage, 75 members signed on as co-sponsors in true bi-partisan fashion. Click here to see who voted in favor of the bill. Click here to see who signed on as a co-sponsor.

HB 248 now travels to the Senate for consideration.

Background: Alabama First-Time Home Buyers Savings Accounts (FHSA)

REALTORS® are advancing a program to help promote homeownership with potential first-time homebuyers in Alabama. The legislation would establish First-Time Home Buyers Savings Accounts to help first-time homebuyers save money toward the purchase of their first home. The FHSA Bill creates tax-free savings accounts that a first-time buyer can use on the down payment and closing costs of a residence. These savings accounts will allow more people to experience the American dream of homeownership.