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Generous Mortgage Credit Certificate Program - No Poverty Line-Dance Experience Required

By
Mortgage and Lending with Chris Butaud, CPA, MS Taxation Guild Mortgage Company NMLS# 13157

Washington State Housing Financing Commission has one of the most widely beneficial and little known programs for first time home-buyers.  The main benefit of this program is an annual Federal Income Tax credit equal to 20% of the mortgage interest costs. This can reduce the effective mortgage interest rate substantially as noted in the chart below.  Additional features are as follows:

1 - You don't need to be doing the poverty line dance to qualify - just a first time home-buyer with reasonably generous income limits($90 to $100K in King and Snohomish counties, depending on household size)

2 - Reduced effective interest costs are also taken into account for purposes of loan qualifying.  

3 - Generally available to be used with a wide variety of loan programs from a standard 20% down conventional loan to a 3.5% down FHA program.

Some caveats are also in order.  Because the main benefit of this program is dependent on the existence of taxable income, it it not appropriate for everyone. And for those who do qualify, there is a potential recapture of the benefit should their income increase by more than 5% above the max program limits each year for up to a 9 year recapture period.  But, for many first time home-buyers, it could be just the thing that opens the door to their home ownership dreams.

The opinions expressed in this article / post are entirely my own and do not necessarily represent the views of Guild Mortgage Company.

Posted by

Chris Butaud, CPA
Masters, Taxation
Loan Officer NMLS 13157
Guild Mortgage
P#206-686-2999

Glenn Roberts
Retired - Seattle, WA

Very interesting program, Chris. I'll forward this along to a current client who is making some decisions.

Apr 20, 2011 05:27 AM
Chris Butaud
Chris Butaud, CPA, MS Taxation Guild Mortgage Company - Kirkland, WA
CPA, MS Taxation,Guild Mortgage Company NMLS #3274

Thanks Glenn.

Apr 20, 2011 05:41 AM