Frequently Asked Questions

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About NY FIRST HOME

What is the NY FIRST HOME initiative?

An initiative designed to assist New Yorkers in saving for the purchase or construction of a first home in New York State.

Modeled after New York’s 529 College Savings Program, individual New Yorkers utilizing a NY First Home account would be able to deposit up to $5,000 ($10,000 for couples) of after-tax dollars annually, receive a deduction on their state income taxes for the principal saved, and apply the savings and any interest earned towards the purchase or construction of a first home in New York State tax-free.

Why is NY FIRST HOME necessary?

Upfront costs including down-payment, high taxes and numerous fees create significant barriers for New Yorkers who work hard to save for a first home.

If passed into law, NY First Home would allow New Yorkers to save and grow their money tax-free to help overcome the burdens of these high upfront costs, which are the primary obstacles facing prospective first-time home buyers in our state.

How NY FIRST HOME works

Would there be tax benefits or penalties for using a NY FIRST HOME account?

The NY First Home initiative would make an individual New Yorker eligible to make a $5,000.00 per year tax deductible deposit into a NY First Home savings account ($10,000.00 for couples) and any interest accrued would remain untaxed for the qualified purchase or construction of a first home.

Unqualified purchases using funds from the NY First Home account may result in penalties including repayment of unpaid taxes and interest.

How could I use the money in a NY FIRST HOME account?

The money saved in the NY First Home account could be used to pay for qualified expenses associated with the purchase or construction of a first home including closing costs; and down-payments.

Would the funds deposited into a NY FIRST HOME account be restricted for use on my first home?

Yes. A NY First Home account would be a dedicated savings account program that provides tax benefits only for the qualified purchase of a first home in New York State.