Showing posts with label homebuyer tax credit. Show all posts
Showing posts with label homebuyer tax credit. Show all posts
Wednesday, May 20, 2009
8000 Tax Credit as Down Payment...Maybe, Maybe Not
It seems the announcement from HUD of the possibility the government allowing using the current 8000 tax credit as a down payment on a home purchase was a bit premature. They have now removed it from the website and it looks like it was more of a thought or an idea that comething concrete. Surprise, surprise....
For more information on Wilmington, NC Real Estate or Luxury Homes, click here!
Contact Jessica at 910-352-1043 or email JessicaRiffle@SeaCoastRealty.com.
Sunday, March 1, 2009
Gov. Perdue Stimulates Ecomony Signs Additional Tax Credit
North Carolina Governor Bev Perdue recently signed the authorization that will provide new financial assistance to first-time home buyers and stimulate sales of about 1,500 North Carolina homes. The authorization enables the North Carolina Housing Finance Agency to expand its Mortgage Certificate Credit (MCC) program, which allows eligible home buyers to reduce their federal tax liability by 20 percent of the mortgage interest they pay annually. The program is one of only a handful in the nation and may ultimately save North Carolina home buyers more than $30 million.
“The MCC will help stimulate the housing market, which is integral to the recovery of our state’s economy,” Gov. Perdue said. “This is just the type of innovation from a state government agency that will help spur our economic recovery.”
The MCC program enables first-time buyers to take a tax credit up to $2,000 every year they occupy their home. This is in addition to the itemized mortgage interest deduction that all homeowners can claim.
“The MCC not only helps home buyers get into their first home but keeps the home affordable through the life of the mortgage by increasing their monthly take-home pay," stated Lucius Jones, board chairman, NC Housing Finance Agency.
For example, a home buyer who borrows $146,750 at 5.5 percent interest pays $8,022 in interest in the first 12 months. The 20 percent MCC means that home buyer reduces his tax liability by $1,751 for that year and allows the buyer to reduce his monthly tax withholding accordingly. Over the first 10 years of ownership, the home buyer would save $14,873 in taxes paid to the IRS.
For buyers who qualify, the MCC can be even more beneficial than the home buyer tax credit in the Housing and Economic Recovery Act (HERA) of 2008. While Congress made the HERA tax credit a true tax credit, it still expires this year, while the benefit of the MCC continues throughout the life of the loan. Even if the home buyer refinances, the 20% MCC tax credit may be reissued with the new mortgage.
To qualify for an MCC, a buyer’s income cannot exceed certain maximums, which range from $85,000 for a family of three or more in urban areas such as Raleigh down to $62,000 in more rural areas. The MCC can be used in conjunction with most mortgages, and borrowers can apply through the Agency’s more than 700 participating lenders and their branches. To find a lender, go to www.nchfa.com.
For more info on Wilmington, NC real estate and Wilmington, NC Luxury Real estate click here!
“The MCC will help stimulate the housing market, which is integral to the recovery of our state’s economy,” Gov. Perdue said. “This is just the type of innovation from a state government agency that will help spur our economic recovery.”
The MCC program enables first-time buyers to take a tax credit up to $2,000 every year they occupy their home. This is in addition to the itemized mortgage interest deduction that all homeowners can claim.
“The MCC not only helps home buyers get into their first home but keeps the home affordable through the life of the mortgage by increasing their monthly take-home pay," stated Lucius Jones, board chairman, NC Housing Finance Agency.
For example, a home buyer who borrows $146,750 at 5.5 percent interest pays $8,022 in interest in the first 12 months. The 20 percent MCC means that home buyer reduces his tax liability by $1,751 for that year and allows the buyer to reduce his monthly tax withholding accordingly. Over the first 10 years of ownership, the home buyer would save $14,873 in taxes paid to the IRS.
For buyers who qualify, the MCC can be even more beneficial than the home buyer tax credit in the Housing and Economic Recovery Act (HERA) of 2008. While Congress made the HERA tax credit a true tax credit, it still expires this year, while the benefit of the MCC continues throughout the life of the loan. Even if the home buyer refinances, the 20% MCC tax credit may be reissued with the new mortgage.
To qualify for an MCC, a buyer’s income cannot exceed certain maximums, which range from $85,000 for a family of three or more in urban areas such as Raleigh down to $62,000 in more rural areas. The MCC can be used in conjunction with most mortgages, and borrowers can apply through the Agency’s more than 700 participating lenders and their branches. To find a lender, go to www.nchfa.com.
For more info on Wilmington, NC real estate and Wilmington, NC Luxury Real estate click here!
Wednesday, February 25, 2009
Yes, you are right
No, it is not too good to be true. It is $8000. You do qualify if you have not owned a primary residence ever OR IN THE LAST THREE YEARS. You qualify if you make less than 75k a year and less than 150k if you are a couple filing jointly. You do not have to repay it unless you sell the home within 3 years of purchasing. However, if you do you just pay back the 8000 from your selling proceeds.
Call me at 910-352-1043 or email me at jessicariffle@seacoastrealty.com with all your questions and comments.
Click here for more information on real estate and luxury real estate in the Wilmington, NC area!
Friday, February 20, 2009
Why I Would Buy
The number one reason to buy NOW. The government is giving away money! Literally. Eight grand, in your pocket if you buy a home in 2009!
Yes, I would. Of course, there are multiple reasons now is a great time like large amount of inventory, historically low interest rates, and great prices. If you wait and wait and try to time it just right you never will.
Call me at 910-352-1043 or email at jessicariffle@seacoastrealty.com!
Click here for Wilmington, NC real estate info!
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