Good morning! Tom Heath with the Heath Team at Nova Home Loans. Today is February 1st and this is our weekly installment of Mortgage and Real Estate Related Matters.
This week’s topic is the Mortgage Credit Certificate, the MCC. We’ve talked about this in the past and we’ve got a lot of information about it on our website, but I’d like to remind you periodically to check in with your first time home buyers and see if they have explored this option.
There’s limits and criteria for it, so it’s not a guarantee, but it is available to first-time homebuyers only, and it’s only available prior to closing on their home. So they want to investigate this early on in the process, but a mortgage credit allows them to take in essence up to $2,000 off of their tax bill each year.
Now, this is not the same as a reduction in the mortgage interest reduction that reduces their income, therefore they pay less in taxes. This is an actual credit. So if they normally get $1,000 refund, they would get $3,000. If they have to pay a thousand dollars, they would only have to pay one. They would actually get a credit of $1,000. The credit is based upon the life of the loan. It does have to be renewed annually and it’s a percentage of the interest paid that can get back to them up to $2,000 per year.
I invite you to check out our website and also reach out to Hailey Ameigh. She is an expert in the mortgage credit certificate and can connect you with the Community Investment Corporation, which is the agency here in town we recommend you refer your clients to.
They can also call us and we can give them some information mortgage credit certificate first-time homebuyers. Great way to give them a leg up on their financial standing now and in the future, my name is Tom Heath. This is the weekly update and you can always find more information on our website the heath team.com always feel free to call us and if there’s a topic you would like us to cover, shoot us a note and we will put it on the calendar. Thank you so much and have a great week.