We Still have Tax Credits!

by Tom Tousignant

in Blog, Mortgages

Even though the $8,000 First Time Home Buyer expired earlier this year, there is still a great tax credit program for some First Time Home Buyers in North Carolina.

While all homeowners can claim an itemized tax deduction for mortgage interest, a Mortgage Credit Certificate (MCC) goes a step further by reducing tax liability, dollar-for-dollar, by a percentage of the mortgage interest paid.

Fairway Independent MortgageĀ is a qualified lender with the North Carolina Housing Finance Agency, which means those who qualify for an MCC canĀ claim 30% of the interest paid on the mortgage as a credit on federal income taxes. This could add up up to $2,000 per year savings on federal taxes — money that can be put toward the mortgage payment.

The $2,000 tax credit can be used year after year as long as you have the mortgage! This could be way more than a measly $8,000 credit.

An MCC can be used with a 30-year fixed rate mortgage, including FHA, USDA, VA, and conventional loans. An adjustable rate mortgage may be acceptable in some instances.

There are income limits that vary by county – this is a list of the current limits.

If you are thinking of buying your first home soon – be sure to ask us if you qualify for the Mortgage Credit Certificate as well – we’ll take care of all the application details if you do.

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