An annual federal tax credit for the life of the loan ( max 30 years) up to $2000 per year. The credit is 30 percent of your mortgage interest each year up to $2000. This is a CREDIT not a deduction...if your federal income tax refund is $500 it will increase to $2500 after you take the credit. The buyer must qualify for ONE of the following: First-time home buyer defined as not owning your primary residence in the last 3 years OR Military veteran with (0 comments)