The NC Home Advantage Tax Credit could reduce your client’s federal income tax liability by up to $2,000 per year if they apply and are approved by us for a Mortgage Credit Certificate (MCC) prior to the home purchase. The savings is for every year that he or she occupies the home as the primary residence. Existing (previously occupied) homes are eligible for a tax credit up to 30 percent of the annual interest paid, while newly built homes are eligible for a 50% tax credit.
The MCC must be used in conjunction with a 30-year fixed rate mortgage, including FHA, USDA, VA and conventional loan types. Participating lenders may provide MCCs in conjunction with our NC Home Advantage Mortgage™. An MCC can also be used with your own loan product. MCCs are reserved through our Online Lender Services (OLS) system.