In conjunction with the Ohio Treasurer’s Office, 1st National Bank is pleased to offer Ohio Homebuyer Plus to our customers.
What is Ohio Homebuyer Plus?
Ohio Homebuyer Plus makes specialized, tax-advantaged savings accounts available to Ohioans to assist them on their homebuying journey. Individuals who open an account through this program will have access to a 6.00% APY* that will help them to save and grow their money faster.
Advantages of Homebuyer Plus
Open an account with as little as $100
Earn above-market interest on your deposit
Qualifying savers may be able to write off up to $5,000 on your state income tax per year**
Flexibility of up to 5-years to save before purchasing your home
How do I qualify?
Be an Ohio resident at least 18 years of age
Have your primary residence located in the State of Ohio
Only use account proceeds toward the down payment or closing costs of a home purchased in Ohio, with the home becoming your new primary residence
Accounts must be used within 5 years, maintain a minimum balance of at least $100, and cannot exceed a maximum balance of $100,000.
Who is eligible to open an Ohio Homebuyer Plus account?
To qualify for enhanced interest savings through an Ohio Homebuyer Plus account, an eligible account holder must:
Be an Ohio resident at least 18 years of age
Have a primary residence in the State of Ohio; and
Only use the account proceeds toward the down payment or closing costs of a primary residence in Ohio
Can my spouse and I both use our accounts to purchase a home?
Two individuals who are legally married are both eligible to open and fund individual accounts and use funds from those accounts for a down payment, closing costs or other eligible expenses associated with a new home purchase.
Where can I open an Ohio Homebuyer Plus accounts?
An Ohio Homebuyer Plus savings account can be opened through 1st National Bank!
Can I use the funds to build a new home?
As stated in Ohio Revised Code Section 135.71(A), the program is designed to make available premium rate savings accounts for the accumulation of funds to pay for the down payment and closing costs associated with the purchase of a home. The funds may be used to purchase a pre-existing home or a newly build home that is ready to be occupied.
However, the funds cannot be used to purchase vacant land for the intention of building a new home or to make payments on a construction loan. In both of those situations, there is no home ready to be occupied.
Are there any income requirements to open an Ohio Homebuyer Plus account?
No. Ohioans at any income level. who meet the necessary eligibility criteria, may open an enhanced interest savings account through the Ohio Homebuyer Plus program.
Is there a limit to the size of the lot for the home?
The home being purchased must be classified as residential real property and must qualify for the owner-occupied property tax reduction provided by Ohio Revised Code Section 323.152(B). Only homesteads and manufactured or mobile homes taxed as real property qualify for the owner-occupied property tax reduction.
Can a married couple open a joint Ohio Homebuyer Plus account?
No. The account must be individually owned by the saver; joint account ownership is not allowed. Two individuals who are legally married are both eligible to open and fund indiviudal accounts.
What tax deductions am I eligible for as an Ohio Homebuyer Plus accountholder and/or account contributor?
Certain 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 (or $10,000 per married couple), per tax year, up to a lifetime maximum deduction per contributor of $25,000 per account. See Ohio Revised Code Section 5747.85 for more information.
Is there a minimum amount that must be kept in my Ohio Homebuyer Plus account?
Accounts must maintain a minimum balance of at least $100.
Can anyone other than me take a tax deduction for contributions made to my account?
Yes. The state income tax deduction for an account contributions may be claimed by the saver or a parent, spouse, sibling, stepparent, or grandparent of the saver. The contributor is responsible for retaining the related documentation. See Ohio revised code 5747.85(A)(3) for more information.
Is there a maximum amount that I can save in my Ohio Homebuyer Plus account?
A Ohio Homebuyer Plus account cannot exceed a maximum contributed balance of $100,000.
How long can I save money through an Ohio Homebuyer Plus account?
Funds saved through an Ohio Homebuyer Plus account must be used within five years for the purchase of an eligible home.
Can I purchase a vacation home or income property with the savings in an Ohio Homebuyer Plus account?
No. Account proceeds must be used toward the down payment and/or closing costs associated with the purchase of a primary residence in Ohio.
I currently reside outside of Ohio, but plan to move there and purchase a home. Can I open an Ohio Homebuyer Plus account?
An applicant must be an Ohio resident at the time of application to open an Ohio Homebuyer Plus account.
What if my circumstances change or I move out of state and do not purchase a primary residence in Ohio?
If an accountholder’s circumstances change or if the move out of state, they keep all money saved as well as the interest accrued in their account. Additionally, if the account holder is no longer eligible, their Ohio Homebuyer Plus account will close and the enhanced interest earnings end. Funds not used for an eligible home purchase may result in State of Ohio tax reporting requirements and possible tax liabilities.
Please note: Individuals are required to review the Ohio Homebuyer Plus participation statement prior to opening an account through the program. You can review the participation statement at: https://tos.ohio.gov/files/Pdfs/Participation.pdf
*Annual Percentage Yield (APY) is 6.00% APY and interest rate is 5.83%, effective as of July 1, 2024, is a variable rate, and subject to change without notice. Minimum balance of $100 to open an account and obtain APY. Subject to approval by the State of Ohio.
**Consult with your tax advisor about tax advantages. 1st National Bank nor the Ohio Treasurer’s office offers any financial or legal advice.
*Relationships must have an average balance of at least 1% of CD or a lending product. Deposits received within 5 business days are considered jumbo deposits. Call for jumbo rates. APY (annual percentage yield) and rates on savings & checking accounts may change daily. Penalty for early withdrawal from CDs.Interest is compounded daily on all deposits. Fees could reduce earnings on your account.
See Rules and Regulations for more details.
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