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NC Home Advantage Tax Credit

The NC Home Advantage Tax Credit could mean more money for your eligible first-time buyers (those who haven't owned a home as their principal residence in the past three years) and military veterans by reducing their federal income tax liability by up to $2,000 per year with a Mortgage Credit Certificate (MCC). Buyers must apply and be approved by us for an MCC prior to their home purchase and the tax credit is good for every year that they occupy their home as the primary residence. Buyers can claim up to 30 percent of the annual interest paid as a tax credit on existing (previously occupied) homes, and up to 50 percent on newly built homes.

The MCC can be used in conjunction with a 30-year fixed-rate mortgage, including FHA, USDA, VA and conventional loan types. Eligible buyers can also pair it with our NC Home Advantage Mortgage™ with down payment assistance (excluding the NC 1st Home Advantage Down Payment) for even bigger savings. We offer MCCs through participating lenders statewide.

Buyer Eligibility

To be eligible for an NC Home Advantage Tax Credit, your buyers must:

  • Be first-time buyers (not have owned a home as their principal residence in the past three years) or military veterans or be buying homes in targeted census tracts.
  • Meet income and sales price limits.
  • Purchase a home in North Carolina.
  • Apply and be approved for an MCC prior to the home purchase.
  • Occupy the home as their principal residence within 60 days of closing.
  • Be a legal resident of the United States.

Property Eligibility

An MCC can be used to purchase:

  • Single-family homes.
  • Townhouses.
  • Condominiums.
  • New or used manufactured homes*.

* Please note that if the MCC is used with our NC Home Advantage Mortgage™, only new construction, doublewide (or larger) manufactured homes are eligible.

Get Started

1

If you’d like to provide your clients with more information on the NC Home Advantage Tax Credit, we have materials to help explain how it works.

Download NC Home Advantage Tax Credit (Mortgage Credit Certificate) Program Guide

2

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