We are all aware of the rush to get your clients under contract by April 30th to qualify for the tax credit. Did you know there is an additional tax credit that does not run out? This tax credit can also be combined with the curent tax credit so you can double your clients tax credit.
How it Works
The credit, a Mortage Credit Certification Program, allows buyers to claim up to 20% of the paid mortage interest every year they live in the home for the life of the loan.
- For the life of the loan, MCC holders may claim a dollar-for-dollar reduction of income tax liability equal to 20 percent of the paid mortgage interest on the first mortgage
- The remaining 80 percent of the paid mortgage interest continues to qualify as an itemized tax deduction.
- MCC tax credit can be used with FHA, VA, USDA, Conventional, Home Path, CHFA programs.
- $180,000 loan amount at 5% APR
- $9,000 of interest can be written off each year, this is a deduction through your taxes but not a direct credit.
- 20% of $9,000 is $1,800 that the buyers can claim as a credit, and get that money back into their pocket!
- $1,800 per year for the LIFE OF THE LOAN!
THIS PROGRAM IS AVAILABLE TO ONLY A FEW LENDERS!
TO GET EXTRA CREDIT WITH YOUR BUYERS YOU MUST CALL CATHERINE EUSEA
Selling Branch Manager
Eusea Team at Prospect Mortgage
2032 Caribou Drive, Suite 102
Fort Collins, CO 80525
877-260-7114 Fax ***NEW FAX NUMBER