Of course, we’re happy to have the $8,000 first time home buyer tax credit from the feds. We’ve seen quite a few people use that. Trouble is that you have to have cash available up front for the down payment and closing costs. The feds are trying to figure out how to give the tax credit to qualifying people up front to be used for these costs, but they have not yet worked out the details and have not actually committed that they can figure it out.
In the meantime, if you or someone you know would be a first time homebuyer who does qualify for the $8,000, you should also be aware that the NC Housing Finance Agency has an additional tax credit to the buyer’s income taxes. It’s called a Mortgage Credit Certificate (MCC). ” The MCC allows eligble buyers to take a federal tax credit of 20% of the mortgage interest you pay annually. It can save you up to $2,000 each year that you occupy your new home.”