First Time Homebuyers, Mortgage Market & Rates

How Big Will Your Tax Credit Be?

 If you are a first time home buyer, this is your year! While you may have already heard about the $8,000 Federal Tax Credit for firs time buyers, did you also know about the Mortgage Credit Certificate (MCC) Program? This is an amazing advantage for 1^st time buyers who qualify, to reduce their tax burden for the life of their mortgage loan! Seriously!!  Fortunately, a qualified buyer can take advantage of the federal tax stimulus in addition to the MCC program making 2009 one of the best times in history to purchase Real Estate.  Conceivably, one could realize up to $10,000 in tax credits by taking advantage of these programs.  

How do you qualify?

1.  Properties must meet sales price limits which can vary by county.

2.  Applicants must meet OHFA income limits.

3.  Ask your local lender!

Note there are Targeted Areas and Nontargeted Areas that affect the credit value in addition to the status of the property.

Here is an example of the MCC in action, compliments of Gary Erler of Priority Mortgage: 

“Imagine a loan amount of $155,000 on your home purchase at an interest rate of 5.5%, your interest the first year will be $8,525. If that home is in a non-targeted area, you can claim 20% of the interest. You now have $1705 as a tax credit thanks to the MCC to help make your loan payment.”

 If you’re a first time buyer, this is your year! The Columbus Team is ready to help you traverse the rocky terrain of home ownership. Do you qualify for the Mortgage Credit Certificate Program?