Uncover up to $60,000 in tax Savings with the New Home BUYER program…

Have you heard or taken advantage of the Mortgage Credit Certificate Program……..

Lets me start by saying that any credit is better than a tax deduction because a credit is a dollar for dollar deduction against your taxes owed.  Ex: if you owe a $1000 in taxes to the IRS and Have a $1000 tax credit then the tax credit will reduce your tax liability to 0.  Remember a credit is dollar for dollar so it will completely cancel your tax liability dollar for dollar.

Now that you know how valuable a credit is lets talk about how this MCC Program can help out first time homebuyers in a huge way.  The way I calculate it this can result in savings up to $60,000.  You would be foolish not to investigate and figure out if you are eligible for the Program…

Ok, the Mortgage Credit Certificate Program was created to allow homeowner to claim a percentage of the mortgage interest every year.

To be approve by the program you must meet some the following criteria:

  • home must be used as primary residence
  • meet the requirements of the mortgage loan
  • have the income and purchase requirements
  • have not owned a home or primary residence in 3 years
  • homebuyer education course must be completed before loan closes
  • MCC issuance fee of 1% of the loan

The MCC program will allow you to Credit 40% of your mortgage interest paid each year up to $2000. The credit can only be applied to tax liabilities and if the credit is more than your taxes owed you can apply the remaining balance to your next year tax return.  You are allowed to claim this credit every year for the  the entire length of the loan.  That is how I came up with $60,000 worth of savings by  multiplying 30 (avg. length of loan) x 2000(max credit allowed).

Please take the time to read more into the loan procedures and benefits.  Each state is different make sure you know the state requirements you need to qualify for the program.  A great company that is helping people with this program located in Houston, Texas is www.newhomeprograms.com ..

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Avoid Penalties and Interest

Today is the last the day to file your 2013 taxes if you filed for an extension.  Failure to file today will result and in additional penalties and interest.  Always know the two most important dates when dealing with income taxes which are : April 15 & Oct.15th.   To avoid tax penalties and interest make sure you contact your preparer/accountant and do some tax planning for the upcoming tax season.  Tax planning and keeping up with documents and receipts are great ways to avoid rushing and penalties.  Not to mention that when you are rushing and your paperwork is not organized there is a bigger chance that your tax preparer/accountant will overlook deductions that could have saved you money.