Paul's Bellingham Blog

My thoughts on Bellingham, the Real Estate market, and more

A First Time Home Buyer Tax Credit that could save you over $10,000

No Comments »

The National First Time Home Buyer tax credit that was available a few years ago got a lot of press, but very few are aware of the tax credit available in Washington state to first time home buyers today. This credit is called the Mortgage Credit Certificate, and the savings can trump the savings in the Federal Tax Credit offered in 2010 of $8,000. I have had multiple clients in the last 2 years take advantage of this, but virtually none of the buyers are aware of it before I bring it up. Part of the reason for that is a lack of press about this credit. The other reason is that many banks and lenders do not participate in this program. You do need to use a lender or bank that participates, and those participating lenders can be found on the MCC website.

The only criteria is you need to use a participating bank, be a first time home buyer, and make less then $90,000 gross per year. The tax credit features a 20% tax credit on the interest you pay on the loan. On a $250,000 house purchase, the average tax credit is about $175 a month. Over a 5 year period, that ends up being $10,500 in tax credits! You can find out more by contacting me at www.paulbalzotti.com or 360-920-5901, or go to the Washington State Housing Commission website at www.wshfc.org/buyers/MCCprogram.htm .

Leave a Reply

You must be logged in to post a comment.