DID YOU KNOW THAT YOU MAY BE ELIGIBLE FOR MORTGAGE CREDIT CERTIFICATES?

Buying a home is a stressful moment in anyone’s life. There are tons of planning and moving parts involved so it’s understandable! Choosing the right lender is also another factor to consider there are several methods and options for buyers to help them get in the home of their dreams.

One of these methods is obtaining a Mortgage Credit Certificate. You may be wondering, what is a Mortgage Credit Certificate? A Mortgage Credit Certificate is a certificate issued by participating state and local governments that allow a taxpayer to claim a tax credit for some portion of the mortgage interest paid during a given tax year.  This program is designed to help first time home buyers offset a portion of their mortgage interest on a new mortgage to help homebuyers qualify for a loan.

The benefits of borrowers obtaining an MCC include the following:

• Could assist in qualifying a borrower for a loan or qualifying for a larger loan amount.
• Allows the borrower to use anywhere from 1-50% of their mortgage interest paid to be used as a tax credit.
• Dollar for dollar reduction against the homebuyers’ federal tax liability.

Mortgage Credit Certificates can be used on several types of loans including FHA, VA, USDA and Conventional.

You may be wondering, am I eligible?

• First Time Home Buyer (the borrower must not have owned a home in the previous three years).
• Must meet income and price restrictions (vary by state and county).
• Home must be used as primary residence.

Obviously, there are more factors to consider, but if any of the statements above apply to you, contact your state or local housing finance agency for information about the availability of MCC’s in your area.