Certified Mortgage Advisor, Kevin Martini shared in episode 118 of the Martini Mortgage Podcast that:…
There is a Tax Credit for First-Time Home Buyers in North Carolina offered by the Martini Mortgage Group at Benchmark Mortgage with partnership with the North Carolina Housing and Finance Agency (NCHFA). The Tax Credit for First-Time Home Buyers is called NC Home Advantage Tax Credit and ofter referred as a Mortgage Credit Certificate (MCC).
What is a Tax Credit?
A tax credit is very different from a tax deduction and is better…it allows one to subtract the amount of the tax credit from the amount of tax that is owed. A tax credit is a dollar-for-dollar reduction of the income tax owed. For illustration Only: if you owed $3,000 in federal taxes and you used the full benefit of the NC Advantage Tax Credit offered by the Martini Mortgage Group in partnership with the NCHFA which would be $2,000 — your net tax liability would be reduced to $1,000
NC Home Advantage Tax Credit offered by the Martini Mortgage Group at Benchmark Mortgage
The NC Home Advantage Tax Credit enables eligible first-time buyers (those who haven’t owned a home as their principal residence in the past three years) and military veterans to save up to $2,000 a year on their federal taxes via a Mortgage Credit Certificate (MCC).
This very unique program leaves one with more money to put toward your mortgage payment. One must qualify and meet the eligibility requirements, if you do: you can claim a federal tax credit for 30 percent of the interest you pay on an existing home (50 percent on a newly built home)—up to $2,000 per year for every year you live in your home.
Martini Mortgage Podcast Episode 087 – Tax Credit for First-Time Home Buyers
Yes, Kevin Martini is not just the Branch Manager and Senior Mortgage strategist of the Martini Mortgage Group at Benchmark Mortgage…he is also a podcaster and episode eighty-seventh is all about the tax credit offered to homebuyers in North Carolina.
How does a Mortgage Credit Certificate (MCC) work?
For illustration Only: a $148,000 mortgage with an interest rate of 4.5 percent, you might pay $6,660 in interest the first year. The Mortgage Credit Certificate would allow you to take a federal income tax credit of $1,998 ($6,660 x 30 percent) for that year.
VERY IMPORTANT: you can still claim a mortgage interest deduction for the remaining 70 percent of the mortgage interest you paid.
Am I eligible for this program?
Maybe…if you are first-time homebuyer or military veteran or buying in a targeted census track. You must be purchasing a home in North Carolina and you must occupy that North Carolina home within 6—days of closing plus you have to be a legal resident of the United States. It is important to note one must meet the household income and sales price limit…for more information on that, contact either Kevin Martini or Logan Martini with the Martini Mortgage Group at Benchmark Mortgage.