North Carolina: First Time Home Buyer Receives Additional Tax Credit
by BourkeGroup ~ March 5th, 2009. Filed under: Asheville real estate news.Announcement for First Time Home Buyers in North Carolina – Includes Buncombe County
According to North Carolina Housing Finance Agency website:
“Home buyers who meet our qualifying income requirements, sales price, and first-time home buyer 
guidelines may be eligible for a Mortgage Credit Certificate (MCC). This federal tax credit was authorized by Congress to assist home buyers with moderate and low incomes.
While all homeowners can claim an itemized tax deduction for mortgage interest, you can go a step further with an MCC. An MCC reduces your tax liability, dollar-for-dollar, by a percentage of the mortgage interest you pay.
If you qualify for an MCC, you will be able to claim 20% of the interest you pay on your mortgage as a credit on your federal income taxes. You can save up to $2,000 per year on your federal taxes, money that can be put toward your mortgage payment.
The MCC can be combined with the new $8,000 federal tax credit if you are eligible until that credit expires in December 2009.
An MCC can be used with almost any type of mortgage, including adjustable rate mortgages. However, it cannot be used with the Agency’s FirstHome Mortgage.
Each lender sets the terms of the mortgage. This includes the interest rate, down payment, underwriting criteria, discount points, and closing costs. While we issue MCCs to qualified buyers, we do not act as a lender. MCCs are offered subject to availability of funds.”
For more information about this program and which lenders in Buncombe County are participating lenders, please contact us for more details. For additional information on the federal tax credit for first time home buyers, click here.
- Steve Bourke, Group Leader
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March 6th, 2009 at 8:43 am
This tax credit is available not only for first time home buyers, but also for home buyers who have not owned a home in the three years leading up to a new purchase.
April 2nd, 2009 at 7:24 pm
I have a client right now who is waiting to purchase until July because it will have been 3 years since he owned a home. Not quite sure if he would buy if the credit wasn’t there, he probably would anyway.
Also I just found out that if your spouse owned a house, you don’t qualify for the credit, even if you were not on title or the loan. My client is going to see if he can put his daughter on the loan as an owner occupant so he can get the tax credit. His daughter is 18 and she is a dependent. Do you think that will work?
April 3rd, 2009 at 2:20 pm
Hawaii real estate agent-
That sure is a great question, I am sure of the three year window to receive the eight thousand dollar tax credit is correct. The one thing that I would suggest is that your client speak to a tax accountant about the dependent. I would think it would all be considered under one house hold.
Have a great Weekend,
Pam