If you are a hero or know a hero that is looking to buy a home as a first-time buyer there is a great program that you need to know about. It is a little known program that many mortgage lenders often don't mention at all. That program is an MCC Tax Credit program and it can be added to many mortgage loan options you may be considering. There are income limits that are based on your total household income. That includes all working-age occupants of your new home. The income limits do vary from county to county. Take Palm Beach County for example:
Non-targeted 1-2 person family size
Non-targeted 3+ Person family size
So if your total household income is below these limits many mortgages will allow an MCC Tax Credit of up to $2,000 per year every year you live in the house as a primary residence. With the maximum amount of 2k this works out to $166 per month. Most first mortgage programs allow you to use this extra income as qualifying income. This will allow you to increase the amount of mortgage loan you can secure.
So how can the Homes for Heroes program apply? Well, since many of our Heroes earn less than the county income limits established for the MCC tax credit program and also often are stretching their budgets to qualify for the most mortgage then can, combining these two great programs can help give our Heroes the opportunity to buy more home. Also once they buy the home, they will be helped each year that they are eligible for this underutilized tax credit.
In my experience as a mortgage lender, I almost never see these two programs combined so I want to get the word out since every dollar counts in today's market where rents are often exceeding what a Hero's mortgage payment would be. Even without taking into consideration the tremendous tax benefits of home ownership, buying is a better option in most cases for our Heroes among us.
Spread the word and help our Heroes among us.