Find Me a Bank!
Angela Peters, The Home Girl, Keeping It... Real Estate!
It has been all about buying a home these past few post and here is the WRAP of that whirlwind tour!
I walked through Nebraska's new First-Time Homebuyer Savings Account, created under LB 803, and how it will let Nebraskans save toward a first home while receiving a state income-tax benefit starting January 1, 2027.
Several of you asked a reasonable follow-up: which bank should I use? What I found changes the question.
There Is No Product to Shop For Yet
Under the law, an account holder simply designates an interest-bearing account at a qualifying bank, credit union, savings and loan, or building and loan as a First-Time Homebuyer Savings Account. The tax treatment attaches to the designation, not to a specialized product the institution has to build.
That is likely why no Nebraska bank has issued a press release announcing one. There is nothing new for most institutions to build. Any qualifying financial institution should be able to accommodate the designation in January of 2027.
What Is Holding Things Up - UMMM the government
Two pieces still need to fall into place, and neither is bank related.
First, the Nebraska Department of Revenue still has work to do. The statute directs the Department to establish the reporting form account holders will file with their state tax returns, and to adopt rules implementing the Act. That guidance still appears to be in progress, and until it is finalized, banks have little reason to publicize a process whose paperwork is not yet written.
Second, financial institutions carry deliberately limited obligations under the law. They are not required to track how withdrawn funds are used, and they are not liable for determining whether an account holder qualifies for the tax benefit. That responsibility sits with the account holder and their tax preparer. Your bank does not need much preparation at all. You do.
The Industry Is Already Behind It
The Nebraska Bankers Association was one of roughly a dozen organizations that formally endorsed LB 803 before it passed, alongside the Nebraska Economic Developers Association and the Platte Institute. The industry supports the concept!
What This Means If You Are Planning Ahead
Here is what I would suggest.
The tax benefit rides on top of an ordinary savings account, so the interest rate and terms come from your bank or credit union, not the state. Compare rates the way you would for any savings account.
Ask your current bank now. Most Nebraska banks and credit unions should be able to accommodate this designation once it becomes operative.
Watch for the Department of Revenue's guidance this fall and winter. (YES I WILL KEEP YOU UPDATED AS THIS ROLLS OUT)
Loop in your tax professional before January 1. Since the compliance burden sits with you, this is worth a conversation with your CPA well before your first deposit.
The Bigger Picture Has Not Changed
This account is one piece of a larger puzzle,...helping people save is only half the equation. We still need the homes for them to buy, which is exactly why the conversation around We Make Omaha, missing-middle housing and actual homeownership inventory matters just as much as anything happening at your local bank branch.
If homeownership is genuinely on your radar for 2027, there is no harm in starting the conversation with your bank and your tax professional now.
Angela Peters | The Home Girl, Keeping It... Real Estate 402.215.1529 | angela@thehomegirlne.com | NE 20110578 IA S73434000 REALTOR® | Realty ONE Group Sterling
This article is for general real estate information and education and should not be considered individual tax, legal or financial advice. Talk with your tax professional or financial advisor about how Nebraska's First-Time Homebuyer Savings Account Act applies to your situation.