COLUMBUS, Ohio (March 6, 2024) On March 5, the Columbus REALTORS® Government Affairs Forum hosted Ohio Treasurer Robert Sprague for an informational session open to members regarding the new Ohio Homebuyer Plus program open to all Ohioans as of January.
Government Affairs Forum Chair Kristie Ramsey opened the session by welcoming members before turning the program over to Columbus REALTORS® President-Elect Buffie Patterson, who introduced Treasurer Sprague.
On January 8, Ohio Homebuyers Plus launched, and according to Sprague, the program has been growing more and more with each passing week.
“We had about 250 registered three weeks in and have reached 1,000 accounts. It’s starting to take off,” said Sprague.
Here’s how it works:
To qualify for enhanced interest savings through an Ohio Homebuyer Plus account, an eligible account holder must: be a resident of the State of Ohio be at least 18 years of age only use the account proceeds toward the down payment or closing costs of a home purchase in Ohio
This program is not just for first-time homebuyers. Even if you currently own a home, you can use it to grow your investment in your next home as long as that next home is your primary residence.
Accounts connected with Ohio Homebuyer Plus must be used within five years, maintain a minimum balance of at least $100, and cannot exceed a maximum balance of $100,000.
Following the same “linked deposit” model used for existing programs like Ag-LINK and Family Forward, Ohio Homebuyer Plus offers above-market interest rates to account holders who deposit money at participating banks or credit unions. Individuals who open an account may also qualify for certain state income tax deductions.
The current net premium interest rate, which is added to the interest rate already being offered by the financial institution, is 2.59%. The state updates that premium interest rate quarterly.
Ohioans at any income level who meet the eligibility criteria may open an enhanced interest savings account through the Ohio Homebuyer Plus program.
Additionally, Ohio taxpayers may deduct the amount of contributions to an Ohio Homebuyer Plus account and the interest earned on that account when computing their Ohio-adjusted gross income. Up to $5,000 of contributions per person can be deducted per account per tax year, with up to a lifetime maximum deduction of $25,000 per contributor per account.
Tax deductions can also be made in the case of a gift or contribution to the fund by a parent, spouse, sibling, stepparent, or grandparent of the saver. The contributor is responsible for retaining the related documentation.
This program can impact all Ohioans. Not just young, aspiring homebuyers but senior citizens who may be looking to move or downsize.
“Our team tried to make the criteria as easy and simple as possible,” said Sprague. “We want this program to impact as many people as possible.”
Visit the Ohio Homebuyer Plus section of the Ohio Treasurer’s WebsiteView the Ohio Homebuyer Plus Frequently Asked Questions(FAQ)View Participating Financial Institutions
