Sure, as a new home buyer you are going to get your $8000 tax credit for buying a home (provided you close before the deadlines) and you will begin to “itemize” your tax deductions (real estate property taxes, mortgage interest, and points) going forward each year. All of these can potentially save you allot of money on your federal taxes which one of the many reasons people chose to buy rather than rent. But did you chose the right loan program to enhance your tax savings or allow to you qualify for that extra $20,000 in purchase price? The Mortgage Credit Certificate (MCC) program can potentially accomplish this.
The MCC program is an enhancement to your loan that allows you to claim 20% of the mortgage interest you pay as an actual dollar for dollar tax credit (not a tax deduction) and this is for the life of the loan (not just one year). The remaining 80% of the mortgage interest continues to qualify as a itemized tax deduction. This is a significant tool to super charge your federal tax savings or increase your purchasing power when out there house hunting.
Talk to a “qualified MCC” lender for more details.
