Red Rocks now offers Colorado First Home Funds Accounts for first-time home-buyers wanting to save money that will ultimately be used toward closing costs on their first home purchase.1 This account allows first-time home-buyers to save up to $50,000 toward the costs of closing on a new home, and the earnings on those funds are free from Colorado state taxes forever! You can even save money and give to a family member or close friend to use toward their closing costs.
1To open a Red Rocks Colorado First Home Funds Account, you must have or open a Red Rocks Savings Account and maintain a minimum balance of $5. Federally insured by NCUA.
Frequently Asked Questions
What makes a Colorado First Home Funds Account different from a regular Savings Account?
You can simply include a form when you file your state taxes and you will not be taxed on any earnings (interest or capital gains) because of the account’s first home savings account status.
How much can I put into my Colorado First Home Funds Account?
You may save up to $50,000 in principal. The annual contribution cap is $14,000 ($28,000 for joint accounts).
What can I use the money from my Colorado First Home Funds Account for?
You may use these funds on anything related to the closing costs on a home, such as a settlement statement, inspections, lender fees, etc.
What is considered a first-time home-buyer?
Someone who has never purchased a home of their own, or someone who is divorced and previously owned a home with their spouse. This include the purchase of single-family homes, townhomes, condos, co-ops and mobile homes. This does not include land inheritances.
May I use the money toward someone else’s closing costs?
Absolutely – as long as they are a first-time home-buyer. You may give the money to a child, grandchild, or even a close friend.
May I use my Colorado First Home Funds Account money if I’m buying with someone who is not a first-time home-buyer?
Yes, as long as you qualify as a first-time home-buyer