FIRST TIME HOMEBUYERS BENEFIT FROM MORTGAGE CREDIT PROGRAM

Senator Kenneth P. LaValle wants first-time homebuyers to be aware of a new state program that allows 20 percent of a homeowner’s annual mortgage interest to be converted into a federal tax credit.  Under the Mortgage Credit Certificate (MCC) Program, the tax credit can be deducted dollar for dollar from a homeowner’s federal tax liability.

“As the Senate sponsor of the first-time homebuyers five year property tax exemption, I believe this is great news and can help more families realize the American Dream,” said Senator LaValle.  “The Mortgage Credit Certificate Program can be used in addition to the $8,000 federal tax credit and the local first-time homebuyer’s exemption.  These incentives are extremely valuable to making a home purchase more affordable.”

The Mortgage Credit Certificate Program enables first-time homebuyers to convert 20 percent of their annual mortgage interest into a direct income tax credit on their Federal Income Tax Return for each year of the life of their loan.  MCCs can be used with any fixed-rate mortgage product offered by your lender and borrowers can also take advantage of the $8,000 federal first-time homebuyer credit. To learn more about the MCC program and eligibility requirements you may visit http://nyhomes.org/index.aspx?page=63 and click on Mortgage Credit Certificates. The $8,000 federal credit program ends November 30, 2009. Go to  http://www.federalhousingtaxcredit.com/2009/faq.php for answers to frequently asked questions. 

“I am a strong advocate of first-time homebuyer programs and am pleased to bring this information to the people of the First Senate District.  It is my hope that they will share this good news with their family and friends,” concluded Senator LaValle.