Buying Your First Home? Do you know about THE $2,000 Mortgage Credit Certificate in North Carolina? It can be used with the $8,000 tax credit!

If you are buying your first home, a Mortgage Credit Certificate (MCC) from NC Housing Finance agency can put more money in your pocket and make your mortgage payment more affordable.

The MCC can be combined with the new $8,000 federal tax credit if you are eligible until that credit expires in December 2009.

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.

Who is eligible? To 1st. time home buyers who meet the sales price and income limits. The maximum sales price limmit is up to $220,000 and the maximum income ranges from $85,000 for a family of three in areas such as Raleigh down to $62,000 in more rural areas.

There are over 700 Lenders who participate and can start this process here is the link. http://www.nchfa.com/Applications/IncomeSalesLender/MCC_ISL_StatewideLenderList.aspx

How does it work? If you borrow say $183,000 at 5.5% interest, you will pay approximately $10,000 in interest in the first 12 months of your mortgage. With the 20% MCC, you can reduce your federal income tax liability by $2,000 for that year, allowing you to reduce your monthly tax withholding by $166. Over the first 10 years of ownership, you would save $18,547 in federal taxes. And if you purchase your home by Dec. 1st, 2009, the $8,000 federal tax credit can be used with the MCC. You can also claim an interest deduction on the remaining 80% of the interest you pay just like most homeowners do.

I thought this was another great incentive for first time home buyers. If that is not an incentive I don't know what is. I wish I was in the market to buy a home so I could save $10,000 right off the bat.

NOW THATS $10,000 SAVING FOR 1ST TIME HOME BUYERS THE FIRST YEAR!