Currently, Broward County offers a Mortgage Credit Certificate (MCC) to first-time homeowners. An MCC is a federal income tax credit designed to assist a person seeking affordable homeownership. With an MCC, the qualified home buyer is eligible to write off a portion of the the annual interest paid on the mortgage as a special tax credit, not to exceed $2,000, during each year in which they occupy the home as their principal residence. The portion or amount of the tax credit is equal to the annual mortgage interest paid multiplied by the mortgage credit rate (30%. This credit reduces the federal income taxes of the buyer and has the potential of saving the MCC holder thousands of dollars over the live of the loan.
How does a Home Buyer qualify and apply?
the Home Buyer must purchase a home with Broward County, Florida and may not have owned a home as their primary residence in the last three years. There are exceptions that apply to target areas. Home buyer's household income and the purchase price must not exceed the maximum limits set by the program. The Home buyer must occupy the home as a principal residence and must apply for the MCC through a participating lender. In addition, the buyer must complete a pre-purchase home buyer education course.
Home buyers should apply for the MCC at the same time they make a formal application for a mortgage loan. Funds are available on a first-come, first-serve basis.
Information provided by Jim Monniger, First Trust Mortgage.
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