Congratulations! You’ve decided to buy your first home… Now what?
We know buying your first home can be both an exhilarating and stressful time. While you’re excited to take this next leap in life, it does come with a large financial commitment.
The good news? There are tax credits and write-offs you can now take advantage of. One of these is the Mortgage Credit Certificate (MCC) Program, which provides first-time home buyers with a tax credit based upon interest paid each year.
The Mortgage Credit Certificate Program
As a part of the MCC program, you will receive a tax credit of 50% of the interest paid on your mortgage for the year, up to $2,000. You don’t just receive this tax credit once, however. The MCC provides you with a tax credit every year, for the life of the loan!
Who Qualifies for the MCC
To qualify for the MCC in Iowa, you must obtain a fixed rate mortgage (ARM loans are not eligible) and meet the required federal income limits, which vary by the size of your household and county, as well as be planning to purchase a home that will serve as your primary residence in Iowa.
In addition to the above requirements, you must meet at least one of the following mandates:
- Be a first-time home buyer, defined as a person who has not had an ownership interest in their primary residence in the past 3 years.
- Purchase a home in a targeted area.
- Be a military veteran with a discharge other than dishonorable who has not previously used a Mortgage Revenue Bond Program.(1)
How to Get Started
As a first-time home buyer, there are many programs and grants available to help you reach your goal of home ownership. Here at RMN, we are dedicated to helping you navigate your options to find the best loan program for you!
To learn if you qualify for the Mortgage Credit Certificate or any other first-time home buyer programs, schedule a meeting with one of our loan officers today!