If you are buying your first home, a Mortgage Credit Certificate (MCC) from the North Carolina Housing Finance Agency can put more money in your pocket and make your mortgage payment more affordable.
The Mortgage Credit Certificate is issued by North Carolina Housing Finance Agency (NCHFA) according to the rules and regulations determined by the IRS.
How the MCC Credit Works:
The MCC allows eligible buyers to take a federal tax credit of 30% of the mortgage interest you pay annually. It can save you up to $2000 each year that you occupy your new home. Because the MCC Credit is an immediate tax credit, you can change the withholding allowances on your W4 to reflect your decreased tax liability and increase your monthly take-home pay.
Who is Eligible:
The MCC is available to first time homebuyers who meet the sales price and income limits. The maximum sales price limit is up to $225,000 and the maximum income limits range from $89,000 for a family of three in areas such as Raleigh down to $66,000 in more rural area.
An MCC Credit can be used with almost any fixed rate mortgage and with some adjustable rate mortgages. The property must be the homebuyer's primary residence.