WHERE DO I OPEN THE ACCOUNT?

I recently wrote about Nebraska's new First-Time Home Buyer Savings Account, which becomes available January 1, 2027.

Then I had what seemed like a fairly obvious question: Where exactly do you go to open one? So I started looking at Nebraska banks. And looking. Here is where it gets interesting.

Your Bank May Not Have a Special Account With That Name

Under Nebraska's new law, an individual can open an account with a qualifying financial institution and designate the entire account as a First-Time Home Buyer Savings Account. Eligible institutions include banks, savings banks, savings and loans, credit unions and certain other qualifying financial institutions. (Nebraska Legislature)

Here is the part I think a lot of people will miss:

The bank itself is not required to label it a "First-Time Home Buyer Savings Account" in its system.

The bank also is not responsible for tracking how you eventually spend the money or determining whether you qualify for the Nebraska tax benefit. (Nebraska Legislature)

That means the responsibility for setting it up correctly, keeping records and documenting qualified expenses falls largely on the account holder.

So yes, you will want to keep receipts and paperwork with this one.

What Do You Actually Get?

Beginning with the 2027 tax year, qualifying contributions can reduce Nebraska taxable income by up to:

$5,000 per year for an individual
$10,000 per year for married taxpayers filing jointly

The maximum total contributions are $25,000 for an individual account holder or $50,000 for joint account holders. (Nebraska Legislature)

The money can be used toward eligible expenses for a qualifying first home in Nebraska, including a down payment, closing costs, appraisal fees, mortgage origination fees and inspection fees. (Nebraska Department of Revenue)

And remember: the person opening the account can designate a qualified first-time buyer as the beneficiary. That opens the door for parents or grandparents who want to start saving toward a future home purchase for someone else. (Nebraska Legislature)

What Should You Ask Your Bank?

As of September 2026, I am seeing information from the Nebraska Department of Revenue, the Nebraska Legislature and the Nebraska Bankers Association, but I am finding very little from individual Nebraska banks publicly explaining how they plan to handle these accounts when January rolls around. The Nebraska Bankers Association supported the legislation and confirms the program was included in LB803. (Nebraska Bankers Association)

So if you walk into your bank after January 1, I would ask:

1. Can I use one of your savings or other qualifying accounts for Nebraska's First-Time Home Buyer Savings Account?
2. What type of account makes the most sense for money I may leave there for several years?
3. What tax forms will I receive from you each year?
4. Can the account be jointly owned if my spouse and I file jointly?
5. What documentation should I keep from the day I open the account?

That last question matters. Nebraska law requires the account holder to file information about the account annually with their state income tax return, including the account's 1099 and other documentation the Department of Revenue may require. (Nebraska Legislature)

I Will Be Watching This One

We are still a few months away from January 1, so I expect banks, credit unions, accountants and the Nebraska Department of Revenue will have more practical guidance as we get closer.

And you know me, I will be watching.

Because creating a program is one thing.

Making sure Nebraska buyers actually know how to use it is where this gets interesting.

If buying your first home is somewhere in your plans, this is one program worth having on your radar now.

Angela Peters | The Home Girl
REALTOR® | Omaha, Nebraska

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