Finding a new home is no small feat in today’s market, but financing for it is even more difficult.
Help a. comes as mortgage credit certificate (MCC).
MCCs are federal tax credits established to make buying a house more economical.
Give dollar-by-dollar tax credits for the share of MCCs mortgage interest you pay.
This means direct savings on your tax bill.
And the good news is that MCCs are linked to your mortgage, so lenders can access the credit year after year.
Below is what you need to know about MCCs and who can get them.
How much is the credit?
The tax credit varies by state.
Homebuyers can usually get 20% to 40% of the mortgage interest they pay.
Internal Revenue Service The (IRS) MCC limit is $2,000 per year.
How can you get MCC?
Issued by MCC housing finance agencies (HFA), but not all agencies offer them.
according to National Council of State Housing AgenciesAround 22,300 MCCs were issued in 2019.
Who is eligible?
Each HFA sets its own rules for who qualifies.
That said, many HFAs use the same general guidelines.
Typically, buyers who meet these requirements may qualify:
- you are a first time home buyer
- Your income is medium or low depending on the median income (AMI) in your area
- Your home purchase is not above a certain threshold
- home is your primary residence
- Your mortgage lender is approved by the HFA
If you want to check if you are eligible, you can use HFA directory,
Your HFA or approved lender can tell you whether you qualify.
How can you claim credit?
The tax credit can be claimed at the time you file your tax return.
you can submit IRS Form 8396 Your MCC is valid every year.
Your MCC is tied to your mortgage, so it cannot be used if you refinance or sell your home.
For more information on first-time home buyers, The Sun has covered a Assistance Program that $10,000 . offers up to,
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