Home Buying in 11550>Question Details

New Homebuyer, Home Buyer in Nassau County, NY

Are there any firstime home buyer tax credit available for 2012/2013?

Asked by New Homebuyer, Nassau County, NY Wed May 23, 2012

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Darrell D. Drouillard’s answer
Actually, there is one relatively unknown tax credit for first time buyers, but to get it involves income verification relative to the area that the home is located in and involves some geographical restrictions in relation to the median area income.

It is a mortgage interest credit and is typically afforded only to clients whose income is below the median income for a geographical area. It is mainly for lower income buyers. It requires issuance of a MCC (mortgage credit certificate) and is very convoluted in actual obtainment. The MCC's are issued by local or state entities which vary by region and our lender must have some knowledge of the process which most will not. I have never known anyone to actually receive it.

If you actually qualify, find anyone that knows about it, and find a home in an area that has the acceptable income ratios, then you can claim the credit with a Form 8396, Mortgage Interest Credit, and attach it to your Form 1040.

Outside of this mess, no, there are no other current, user-friendly tax credits. But the above is a great resume builder for a politician to show how they are helping first time buyers. :-)
5 votes Thank Flag Link Sat May 26, 2012
Yes there is the MCC tax credit for first time home buyers. Best tax credit ever but I am recieving emails from people have difficulty finding the MCC in their state. So I suggest reading article #9 on the MCC Tax Credit at Your-Road-Home.com. Your loan officer and lender register you for the MCC and you must register before you close on your loan. So many of the loan officers dont have experience with the MCC. Choosing your loan officer and lender are the first step of financing and buying a home and are a critical choice. Also read Consultation Interviewing Loan Officers. Gather up all the information you can from objective sources and than select your loan officer. Experience with all of the loan types is important. Trulia is also a good source of info and when you are ready you will find agents and loan officers from your area offering their services on Trulia.
If you are a first time home buyer you will find a link to NY's assistance and grants at Your-Road-Home.com. If yu have a problem finding the MCC email me and I will help.
Best of Luck, Stephen
11 votes Thank Flag Link Mon Apr 8, 2013
I just purchased a townhouse and before I did, I asked my lender at CHL if they knew anything about the MCC credit. They told me that I would have to look into that when I filed my taxes. I guess it is too late for me now.
Flag Wed Nov 13, 2013
Yes but it apparently is not as well marketed as the previous (up to $8000) tax credit for 2008-2010. It is the MCC tax credit, and is explained here.

9 votes Thank Flag Link Sun Jun 9, 2013
Yes there is a tax credit for for first time home buyers. Read about it; your-road-home.com. Most lenders will not tell you about it because its extra work for the loan officer. This tax credit is better than the old $8000 credit. Be sure you file for it before you close your loan. Good Luck
5 votes Thank Flag Link Sun Feb 24, 2013
There are no national federal incentives for first time buyers , these expired years ago and there is no discussion I'm aware of to reinstate them. the home buying market has been steadily strengthening and there's no reason for them at this time. Rates however are lower than ever and it is a great time for buying. Be sure you find yourself a good buyer broker. See link below on how to do this.
3 votes Thank Flag Link Thu Oct 18, 2012
Here is a link that would help in answering your question:

3 votes Thank Flag Link Thu Oct 18, 2012
Thank you for your post Mr. Drouillard.

I have been looking everywhere for the answer to all of this. Sorry to see it is "NO break for first time home buyers!"

What is especially disappointing is the tax rate I enter when I cash out my annuity this year to buy a home. It counts as pure income. Added to what I presently earn it places me in a horrible tax bracket that is deemed "wealthy". Susan and I decided to pay cash for a home this year, to become more free and independent. Grow our own food. That sort of thing. I've been saving up since 1978 for this.

The penalty of a mortgage is the same as a tax when you figure interest, which I am happy I don't have to try and write off. The blessing of saying "NO" to a mortgage is being free and independent.

The penalty is you never own it because of property tax.

As government power grows, liberty recedes.

Lango out.
2 votes Thank Flag Link Fri May 17, 2013
The MCC is very simple and straight forward. There is an income parameter and yu must be a first time home buyer. It is not complicated. I promise. I have been in real estate for 33 years and coached hundreds of people through the MCC.
A first time home buyer is someone who has not owned their primary resident for three years.
You will find information on Your-Road-Home.com
2 votes Thank Flag Link Sun Jan 13, 2013
Is there anything you can do if you have already closed on your loan before you had any idea that there was a tax credit available?
Flag Tue Feb 5, 2013
Has anyone heard about 2013 tax credit for $10,000 for homes purchased between march and October this year?
1 vote Thank Flag Link Sun Mar 17, 2013
Hello please send me information about this as well aabednego@gmail.com
Flag Tue Feb 4, 2014
I would like to know about this tax credit for $10,000 icoman7@yahoo.com. thank you.
Flag Mon Jan 27, 2014
Can you let me know too:) kerinicole13@yahoo.com
Flag Fri Oct 18, 2013
Well I never heard about it, but Just bought a home this month... I would be VERY interested in finding out though... if you know, email me at brandonharrison10@gmail.com
Flag Thu Aug 29, 2013
Sorry to hear that you have already closed. The MCC tax credit would have been your only option really.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
310 Crossways Park Drive
Woodbury, NY 11797
(516) 606-9648 Cell
(516) 740-4478 Office
(516) 918-5383 Fax
0 votes Thank Flag Link Sun Dec 29, 2013
I live in a apt pay rent 1195 I will like to be a first time home buyer of a one bed room Con do. Can some please help me out
0 votes Thank Flag Link Thu Dec 19, 2013
Update 6-27-2013

Also Read #9 MCC Tax Benefits for First Time Home Buyers 2013 at Your Road Home.com

A First Time Home Buyer is someone who has not owned their primary residence for three years.
Each State’s guidelines vary but find here the most common.

Loan Types
MCC, Mortgage Credit Certificate, is available with fixed or adjustable rate conventional conforming (i.e., Fannie Mae or Freddie Mac saleable) FHA, VA, Rural Development mortgages. MCC Fees

The nonrefundable MCC fee is $650 and it is collected at the time of loan closing.

Program Guidelines
As with any program, there are qualifying rules and regulations. MCC eligibility requirements include:

New Loans Only
The MCC is available with new purchase loans only.

Income Limits
Borrowers must not exceed these Maximum Annual Income Limits:

Acquisition Cost Limits

Borrowers must meet these property acquisition cost limits. Acquisition cost limits of a single-family residence must not exceed the following:

This varies for each state

Eligible Properties
Single-family existing homes, new construction, manufactured homes (permanently) affixed or on leased land).

Business Use Limits

No more than 15% of the residence may be used for trade or business purposes.

Owner Occupancy
The MCC is valid for the life of the loan, so long as you remain the owner-occupant of the residence.

Homebuyer Education
Varies from State to State

Recapture Tax
A recapture tax may apply only in the event that – you sell your home in the first nine years, and – your income has increased significantly, and – you have a substantial gain on the sale. IRS Form 8828 explains how the tax is calculated.

Refinancing Your Property
In many states the MCC can be carried over to the new loan.

Also Read #9 MCC Tax Benefits for First Time Home Buyers 2013

Article #8 for your State scroll way down the left column to #8

Best of Luck, Stephen Webber
Web Reference: http://Your-Road-Home.com
0 votes Thank Flag Link Thu Jun 27, 2013
In response to the site: http://firsttimehomebuyertaxcredit2012.org/

The article is not signed by an author and it is misleading.
At the moment (2012/13) there is no Tax Credit for the first time home buyer besides the already mentioned MCC.
0 votes Thank Flag Link Mon Apr 8, 2013
Why ? Why they got rid of it ? Why we new home buyers should not be able to get anything back as others did ? It is not fair ! My loan officer and/or my realtor did not tell me anything about MCC so I was depending on getting something back so it would help me paying my taxes on my condo for the second half of the year, why should only some people can get the benefits and some not ? Who decide for this things ???
Flag Mon Mar 3, 2014
I have been looking around as well. rates are so good at the moment. i did find some good tips here - if any one else finds anything please post thanks
0 votes Thank Flag Link Fri Aug 3, 2012
Unfortunately not at this time...
0 votes Thank Flag Link Wed May 23, 2012
There should be.

But interest rates have never been this
Low and housing prices are 8-10
Years ago prices
Very good environment for the first time home buyer.

Good luck.
Call me@516-323-6245
0 votes Thank Flag Link Wed May 23, 2012
There should be.

But interest rates have never been this
Low and housing prices are 8-10
Years ago prices
Very good environment for the first time home buyer.

Good luck.
Call me@516-323-6245
0 votes Thank Flag Link Wed May 23, 2012
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