"First-Time Homebuyer Savings Accounts" Tax Deduction Question

[Tyler Jordison]

Hey All, 

I just learned about something called a "First-Time Homebuyer Savings Accounts" that Iowa offers. This is essentially a tool to get the younger generation to move from renting to buying by offering a tax deduction. Short hand, the new provision basically says - if you set up one of these account and add money to it with the intention that money will go towards a down payment on your first house you will get a tax deduction. If filing jointly on your taxes (which is what we would do), we can deduct up to a maximum of $4,000 off our income taxes if we deposited $4,000 into the account, and the same logic persists with amounts lower than $4,000. 

We are looking to buy a 2, 3, or 4-plex and house hack it. We would most likely finance with an owner-occupied FHA loan. My question is, does a small multifamily like this qualify as our first home, primary residence purchase? Essentially, would this type of purchase qualify for this tax benefit?

The new provision took effect on January 1st, 2018. The full text can be found here: First-Time Homebuyer Savings Accounts

Thanks everybody for all your help!