Alabama First-Time and Second Chance Home Buyer Savings Account

Open a tax-free savings account to save towards purchasing your first home - a resource exclusively for Alabama's first-time or second-chance homebuyers who haven't owned or purchased a home in ten years.


  • A first-time and second-chance home buyer savings account is established by opening a separate savings account at a financial institution for the sole purpose of holding funds for a down payment and closing costs for the purchase of a first home in Alabama.
  • The account must be labeled "first-time and second-chance home buyer savings" in the name of the account holder(s) shown in the financial institution's records or in their own written documentation.
  • There is no limit to the annual amount of deposits. There are, however, limitations on income tax deductions from the deposits. Income tax deductions for individuals are limited to $5,000 per year for a total of $25,000 over ten years, and joint savings account holders who file taxes jointly can deduct up to $10,000 per year for a total of $50,000 over ten years.
  • The First-time and Second-Chance Homebuyer Act was effective January 1, 2019.  An individual must open a first-time/second-chance homebuyer savings account between January 1, 2019 and December 31, 2028.

For complete details and restrictions, click here