Are there tax breaks for first-time buyers?
Many city and county governments offer Mortgage Credit Certificate programs, which allow first-time homebuyers to take advantage of a special federal income tax write-off, which makes qualifying for a mortgage loan easier. Requirements vary from program to program. People wanting to apply should contact their local housing or community development office. Some things to keep in mind: • Some credit may be claimed only on your owner-occupied principal residence. • There are maximum income limits, which vary by locality and family size. You must be a first-time homebuyer, which means you must not have had any kind of ownership interest in a principal residence during the past three years. This restriction may be waived, however, if you are buying property within certain target areas. Allocations must be available. A local MCC program may have to decline new applications when it runs out of funds.
