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It’s Tax Time: How the Mortgage Credit Certificate Can Help

Tax Day is almost here, and homeowners are looking for ways to save big on their taxes by leveraging as many tax breaks and deductions as possible. However, if you are in the market to purchase your first home, there is one tax break that you don’t want to miss! The Mortgage Credit Certificate, administered by the North Carolina Housing Finance Agency, can save you big on your taxes every year for the life of your loan when you secure it during your home purchase.

What is the Mortgage Credit Certificate?
The Mortgage Credit Certificate, or MCC, is a tax credit that enables eligible first-time home buyers and military veterans to save up to $2,000 a year on their federal taxes. This credit can leave you with more money in your pocket every year for the entire life of your loan.

How Does the Mortgage Credit Certificate Affect Taxes?
If you qualify, you can claim a federal tax credit for 30% of your annual interest on an existing home or 50% on a new home, up to $2,000 annually. This leaves more money in your pocket to pay your mortgage during tax time, and can make your home more affordable. Even better, you can still claim a mortgage interest deduction for the remaining percentage of the interest you have paid, making your tax liability even lower!

Do I Qualify for the Mortgage Credit Certificate?
You may qualify for the Mortgage Credit Certificate if you are:

  • A first-time home buyer or military veteran
  • You meet the income and sales price limits
  • You are purchasing a new or existing home in North Carolina
  • You occupy the home as your principal residence within 60 days of closing
  • You are a legal resident of the United States

Eligible properties are:

  • New and previously owned single-family homes
  • Townhouses
  • Condominiums
  • New or used manufactured homes

How Do I Get Started?
If you are interested in the tax saving benefits of the Mortgage Credit Certificate, getting started is easy. When you are ready to purchase your home, talk to your lender to see if you qualify, and they can reserve a Mortgage Credit Certificate for you before you close on your home.

Ready to get started? Browse our list of participating lenders to find one near you! Learn more here.