Up to $2,000 in Federal tax refund is available for first time home buyers in North Carolina. There is a program called “Mortgage Credit Certificate” (MCC) for first time home buyers in North Carolina. Normally the mortgage interest a homeowner pays is handled as a tax deduction, meaning it reduces their taxable income. Under the MCC program, 30% of that interest is converted to a tax credit which means more money in their pocket. This program is available through lenders who participate with North Carolina Housing Finance Agency.
An example of calculating the MCC is:
$100,000 Loan Amount
X 4.00% x Interest rate
$4,000 First Year Interest
X 30% x MCC Credit
$1,200 Annual Credit
÷ 12 Months per year
$100 Monthly Credit
Using the example above this monthly credit of $100.00 can be used to lower the first time home buyers qualifying ratios. Also, and this is the best part, the homeowner will receive this credit as long as the home remains their primary residence and they have this mortgage. This can add up to tens of thousands of dollars over the life of the loan.
To be eligible, the main guidelines are: the buyer and all occupants of the home must be a first time home buyer, have an income below the established county limit, and purchase a home with a value of $225,000 or less.
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Who Can You Call For Your Mortgage Needs in North Carolina?
Call Shay Campbell a licensed Loan Officer, NMLS# 46083, located in the Triangle area of NC, which includes Raleigh, Cary, Durham, Chapel Hill, Apex, Holly Springs, RTP and the counties of Wake, Durham, Johnston, Chatham and Orange. Shay has over 13 years of originating experience in North Carolina and can assist you with FHA, VA, USDA, NCHFA and conventional loans. He has a special interest in working with first time home buyers. Shay can be contacted at 919-624-8614, shay@shaycampbellmortgage.com or visit his website at shaycampbellmortgage.com
