If you haven’t heard about the MCC (Mortgage Credit Certificate) and you are a looking to buy a home, you REALLY need to take the time to find out more and how it can benefit you. The MCC is available to first-time home buyers OR NON first-time home buyers if purchasing in a targeted area!
It is a tax credit that reduces the amount of federal taxes liabilities by letting you claim up to 20-50% (%varies on loan amount) of you annual mortgage interest as a tax credit. You are still able to claim the remaining mortgage interest as a tax deduction. So it is a double bonus!
By adjusting your withholdings, this means more money in your pocket! Who wouldn’t want more $$$ in their paycheck? Yes, there are income and purchase price restrictions (click here for guidelines). The purchase price and income limits are higher for targeted areas.