7.00% APY* Savings Account

To qualify for enhanced interest savings through an Ohio Homebuyer Plus account, an eligible accountholder 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.
   

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.

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 individual accounts.

Accounts must maintain a minimum balance of at least $100.

A Ohio Homebuyer Plus account cannot exceed a maximum contributed balance of $100,000.

Funds saved through an Ohio Homebuyer Plus account must be used within five years for the purchase of an eligible home.

No. Account proceeds must be used toward the down payment and/or closing costs associated with the purchase of a primary residence in Ohio.

An applicant must be an Ohio resident at the time of application to open an Ohio Homebuyer Plus account.

Accounts may be transferred between participating financial institutions at the discretion of the saver.

If an accountholder’s circumstances change or if they move out of state, they keep all money saved as well as the interest accrued in their account. Additionally, if the accountholder 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.

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.

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 built 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.

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. Homestead is defined in Ohio Revised Code Section 323.151(A)(2) as, “The homestead shall include so much of the land surrounding it, not exceeding one acre, as is reasonably necessary for the use of the dwelling or unit as a home.”

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.

Yes. The state income tax deduction for 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 Section 5747.85(A)(3) for more information.

Eligible Withdrawals may occur over a maximum period of ninety (90) calendar days. Once a Saver is in “Withdrawal” status, they must use all their Account balance for the qualified purchase of a Home or recontribute the withdrawal back to their Account. A Saver in “Withdrawal” status that has not used their entire Account balance within ninety (90) days may be deemed as having made an Ineligible Withdrawal. Making an Ineligible Withdrawal can result in the forced closure of the Saver’s Account.