Purchasing a new home can be a daunting task. Worse, the idea of homeownership might seem out of reach to some families. Fortunately, there are means to make homeownership more reasonable, thus giving those with modest incomes a chance at the American Dream.
In certain areas of the United States, first-time home buyers can receive a tax credit designed to lessen the burden of a monthly mortgage. While the specifics can change from state to state, and even county to county, first-time homeowners may be able to participate in a Mortgage Credit Certificate program.
What is a Mortgage Credit Certificate?
At its core, an MCC—as it’s commonly known—offers an income tax credit to first-time home buyers. Theoretically this frees up a household’s income to make mortgage payments. An MCC can save you up to $2,000 a year for the lifetime of your loan.
An MCC, however, can be complicated. To help digest the certificate program, Movoto Real Estate has broken down its pieces. With our state-by-state guide, you’ll be able to answer:
- What is a tax credit?
- How does a Mortgage Credit Certificate work?
- Who is eligible?
While not every area has an MCC program, many states have plans to help first-time home buyers through alternative means. We have included a discussion of one such plan, known as a Mortgage Revenue Bond Loan.
Read the full article here: http://www.movoto.com/blog/real-estate-tips/tax-savings-every-first-time-home-buyer-should-know/