First Time Home-Buyers
$2000.00/year tax credit
Did you know when buying a house in the state of OHIO for the first time, using a lender working with OFHA products you could receive a $2000.00/year maximum federal income tax credit with a MCC?
Do you know you CANNOT ask for this after the loan has been processed?
Did you know this can be coupled with other OHFA products like the Grants for Grads, military veterans program, and sometimes available for those who buy homes in targeted census tracts; not a first-time home buyer?
"What is a MCC," you ask?
"The Mortgage Credit Certificate Program (MCC), authorized by Congress in the Tax Reform Act of 1984, is an alternative to mortgage revenue bond-backed financing and is a means of providing financial assistance to “first time home-buyers” for the purchase of new or existing single-family housing."
-A MCC is a federal income tax credit certificate.
-The MCC value is based on mortgage interest paid each year.
-The amount of credit is programed by HFA(housing financing agencies) and can range from 10% to 50% of annual mortgage interest per year; not to exceed $2000.00/yearly. The tax credit is for the life of the loan and not to be transferable.
-This credit reduces the amount of federal income taxes paid by the buyer saving the MCC holder thousands of dollars over the years of the lifetime of the loan.
When you are the buyers agent you need to inform your client they need to ask for this certificate at the time of the application of the loan. This MCC credit is NOT available after the loan has been processed.
Need help buying your first home and tips on how to save money buying your home:
Gwynn Burns - REALTOR
Keller Williams - The Ez Sales Team