| First
Time Homebuyer Programs fall into three categories: Mortgage Credit Certificates (MCC) which allow
the borrower to deduct a portion of their annual mortgage interest payments as a credit
against income taxes owed on your tax return. The benefits of this are much greater than
simply taking an itemized deduction for the annual interest paid. Any portion of the
annual interest paid which can not be taken as a credit may still be shown in itemized
deduction section of your tax return.
Mortgage Bond Programs
refer to loan programs that offer mortgage funds obtained from the sale of tax exempt
bonds. The proceeds from the bond sale are used to provide the borrower with below market
rates of interest loans and/or down payment and closing cost assistance.
Grant Funds are
just as their name implies, outright grants from non-profit entities that may be used for
down payment and/or closing costs. A portion of the grant may have to be repaid if the
property is sold within a stated period of time.
First Time Homebuyers are defined
as those individuals who have not had an ownership interest in a home within the last
three years. These programs may be sensitive to the borrower's
gross annual income and are available only in specific geographic areas. They do
not follow any time table as to availability so we must keep close watch on news
publications and other sources of information about new programs for details. |
