Eligible borrowers can receive a 20% tax credit on the amount of annual interest paid on their home mortgage. Benefits of the MCC are:
- good for the life of the loan.
- remaining 80% of annual interest paid can still be used for tax deduction.
- can be used to reduce borrower’s debt to income ratio.
- unused tax credits may be rolled forward for up to three years.
- can be transferred to subsequent refinance transactions for the subject property.
- tax credit limited to $2,000 per year.
- generally, borrowers are required to be first-time homebuyers.
- subject to income and property acquisition cost limits.
- property must be owner occupied.
- subject to state or local MCC fees.
It is recommended that the borrower work with a CPA or Tax Planner to properly adjust their tax withholdings.
Michelle Castle provides mortgage loans to all of North Texas and Southern Oklahoma. Call Michelle Castle at (903) 892-1998 if you are looking for a home loan in North Texas and Southern Oklahoma.