Think all of the first time buyer tax credits are gone?
There’s still a little-known tax credit called the Mortgage Credit Certificate being offered to qualified first-time buyers that saves you money every year when filing your income taxes.
How the MCC Works:
The Mortgage Credit Certificate (MCC) offers qualified
homebuyers an annual tax credit of up to $2,000 on their
federal taxes for the duration of the mortgage (not to
exceed 30 years). Reducing your tax liability increases
the income you have available for mortgage payments
or home repairs and improvements.
The Mortgage Credit Certificate may be applied to all
types of mortgages (e.g., conventional or government
insured, fixed or adjustable rate). However, the MCC
may not be used in conjunction with IHCDA’s First
Home interest rate product.
Example: Mortgage Amount of $100,000 x 5% Interest Rate $5,000 Yearly Interest $5,000 Yearly Interest x 20% Tax Credit $1,000 Credit to the Borrower Each Year
This is an on-going program, so it can save you thousands over the life of your mortgage. Income limits do apply. If you have questions or would like more information, let us know!