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Make Tax Day Better Next Year with the NC Home Advantage Tax Credit

A stack of gold coins

Tax Day can be a stressful day for many North Carolinians. With the implementation of new tax laws and the general hectic nature that comes with tax season, it’s no wonder Tax Day doesn’t fall on anyone’s “favorite holiday” lists. However, the NC Home Advantage Tax Credit can turn around Tax Day for homeowners who qualify. Read on to learn how the NC Home Advantage Tax Credit can save eligible first-time home buyers and military veterans up to $2,000 per year on their federal tax liability after they purchase a home.

What is the NC Home Advantage Tax Credit?
The NC Home Advantage Tax Credit is a Mortgage Credit Certificate (MCC) issued by the North Carolina Housing Finance Agency through participating lenders statewide. Eligible home buyers who are approved for an MCC before they make their home purchase can save up to $2,000 per year on their federal taxes, leaving more money in their pocket to put toward a mortgage payment. This might help make buying a home more affordable for first-time buyers.

How Does it Work?
The NC Home Advantage Tax Credit is a credit, not a deduction, against your tax liability. If you purchase an existing home, you can take 30% of the interest you pay each year, up to $2,000 per year, as a tax credit. If you purchase a newly built home, you can take 50%, up to $2,000 per year. You can use this tax credit every single year you have a tax liability for the life of your loan, which means every year you are paying your mortgage, you are also getting this tax credit.

How Can It Make My Home More Affordable?
The NC Home Advantage Tax Credit decreases your federal tax liability, which means more money back in your pocket year after year. You don’t have to wait until tax time to see that money either. Once you have secured your MCC, you can adjust your tax withholdings to account for it, meaning more money in each paycheck that can go toward paying off your mortgage. Talk to your tax advisor for more information.

Who is Eligible?
Home buyers who are eligible for an MCC are first-time home buyers (have not owned a home as their principal residence in the last three years) who are purchasing a principal residence in North Carolina. Military veterans may also be eligible. Other eligibility requirements apply.

How Do I Get One?
MCCs are only available through on of our participating lenders. You must apply and be approved for an MCC before you purchase your home.

For many homeowners in North Carolina, Tax Day is just a little bit easier because of the NC Home Advantage Tax Credit. If you’re in the market to buy a home in North Carolina, you may be eligible for the tax savings benefits of this mortgage credit certificate too! Learn more about the NC Home Advantage Tax Credit and find a participating lender for it and all our mortgage products at