In the past, there were one time incentives for first time home buyers of $8,000 and $7,500. These are over. There are still some year end tax accounting strategies related to loan costs and interest deductions that you should talk with your accountant or CPA about. Your mortgage payment includes repayment of principal and interest to your lender. If the IRS refunded 100% of your mortgage payments, they would be paying your mortgage. They are not doing this.
The state of NC has a Mortgage Credit Certificate available to qualified borrowers (see http://www.nchfa.com/Homebuyers/HBwhatweoffer.aspx) For qualified borrowers, there is down payment and closing cost assistance of up to $7,500. There are also down payment matching grants of up to $4,000. If you appreciate an answer, please give thumbs up. For the most helpful answer, please say thanks with a best answer click.
you do recover soem of your monthly mortgaqge payment back in the form of a tax credit. Your accountant would be better suited to give you a dollar amount. but what is tax deductible if you file the long form and itemize your deductions is your mortgage interest.
In years past I have itemized my deductions and received enough back to cover a few months of mortgage payments extra than what I had prior to owning a house. I have also had a year where the itemized deductions were nto as good as takign the standard deductions.
Your mortgage lender will provide you at the end of the year a form that will give you the interest you paid year to date, taxes paid and any mortgage insurance you paid. Those items when you itemize have places to be put in to see if it will be beneficial for you to itemize your deductions ro take the standard deduction.
Coldwell Banker United
Wow!!! That sounds like FREE LODGING. FREE HOUSING!!!
Sounds Too Good To Be True.......and it is.
As Larry eluded to, take some time to chat, face-to-face with a real estate pro to sort out fact from fiction. Then your situation can be assessed and the possibilities laid out for your evaluation.
The program you describe NEVER existed, will never exist, and should not be part of your purchase decision. Tax credits or deductions are available at the whim of those in congress. They are a nice benefit as long as they exist, but, looking at the dysfunction in DC, I would not count on common sense to prevail.
Clearly, your question suggests you embrace an element of the need for risk aversion. You may even need some home payment support alternatives. Perhaps a strategy that allows you to select when and if you need to engage such mechanisms. WalkableHomes may be relevant for your consideration. Homes so qualified provide the bumps in the road safety net, or early pay-off or education or retirement funding. However, the RIGHT home must be selected. Chat with a real estate pro regarding this option.
PS: Please exclude the source of this bad information from your circle of real estate advisers. Home owners are a good source. Real Estate Pros are the best source.
Best of success in finding your new home,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
you paid a total of $10,000 in mortgage interest. Your at the 20% tax rate. You would receive a $2000 tax credit. As my father would say, "It's better than a poke in the eye with a sharp stick ", but it's a long way from getting your mortgage payments back as a tax credit.
Do not buy a home based on tax credits/deductions, I've personally owned close to 30 homes over the years, this has never once been part of my thinking process, and it shouldn't be part of anyone eles's either. Yes you should take whatever tax breaks you can but you should not make decisions on what to buy based on a possible tax credit.
I would suggest two things to you the first is you should check out the North Carolina Housing website.for information on programs available to first time NC homebuyers; http://www.nchfa.com/
Secondly find yourself a great buyer broker to help you. I've attached a link below to a blog I posted a while back on how to do this regardless of where you live.
I wish you a healthy and exciting 2013 and happy house hunting.
Give me a call or email to discuss further.
Although I am not a tax professional, I did stay at a Holiday Inn Express last weekend. (just kidding! you should be certain to consult your tax advisor as individual results may vary.)
As Russell mentioned, you may want your loan officer to research your qualifications for a Mortgage Credit Certificate. It's an additional tax credit.
Email me directly for more help if you don't have a buyer's agent! My services are free for buyers!