WHERE TO BEGIN
Contact a lender for pre-qualification
Contact us with your lender information
Let's go shopping
Lenders
STATEWIDEMORTGAGE -KIM Robarts
kim@statewidemortgage.com
JEFFERSON COUNTY FEDERIAL CREDIT UNION-Kevin Lush
kevin@jcfcu.org
UNITED FINANCIAL GROUP-John Dziedzic
jon@ufglending.com
Home Buyer Tax Credit
What is KHC's Home Buyer Tax Credit?
KHC's Home Buyer Tax Credit is available through Mortgage Credit Certificates (MCC), which reduce the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment. That means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay. The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan. But an MCC gives you a tax credit of 25 percent (not to exceed $2,000). You can still deduct the remaining 75 percent interest on your income taxes. A tax credit is not the same as a tax deduction. A tax deduction reduces the portion of your income that is taxed, so you pay less. A tax credit is a direct, dollar for dollar reduction in the total tax you owe. The MCC is effective for the life of the loan as long as you live in the home. If you sell your home in the first nine years of ownership, you may be subject to Federal Recapture Tax.
