Interested in understanding how to increase your first time home buyer tax credit (FTHB) by $2000.00? Here is information how you can claim up to $10,000 in tax credits your first year of home ownership and up to $2,000.00 every year after.
Through the efforts of the Recovery Act, a first time home buyer has the potential to qualify for another $2000.00 tax credit by applying for the Mortgage Credit Certificate (MCC). This program is serviced by the North Carolina Housing Finance Agency.
This credit is for first time home buyers only, which means no home ownership in the past 3 years by the applicant. If you are married, both spouses must meet this requirement. This certificate will allow you to claim a portion of your mortage interest as a credit against your tax liabilities. This a huge savings over the length of your loan. Think about it!!
Here are a few highlights:
There are income limits to the MCC .
You can qualify for the MCC and not the FTHB tax credit.
The maximum amount you can get a year is $2000.00.
You can claim 20% of the interest you pay on your mortgage as a credit on your federal income taxes.
This a dollar for dollar tax credit.
Only a certified NCHFA Lender can assist you with the application and certificate.
You must apply before you close on your first home!
For more information on the is tax credit visit: North Carolina Housing Finance Agency
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