My New Blog

This is just a reminder that that time is quickly running out for First Time Homebuyers to qualify for the $8,000 tax credit! You must have an accepted contract NO LATER than October 1^st!  The closing must happen no later than November 30, 2009.  You are a First Time Homebuyer if you have not owned a house in the past 3 years.  The credit is 10% of the sales price up to $8,000.

Are you aware of the grant programs available to home buyer’s in the Rochester and surrounding area? You may qualify for up to $7500 for down payment and closing cost assistance from a local organization, depending on income guidelines. Also, one of the local banks has a 1^st time homebuyer program with an additional $2500 in assistance! There is another local organization that offers up to $30,000 grant for home repairs! Wow!  Some of these grants are limited to a geographic area within Monroe, Orleans, Ontario and Genesee Counties. 

If you would like to take advantage of these great programs, you really need to hurry as the money set aside for these funds is quickly running out. Let me know if you are interested in starting your homebuying process today.

Have a great summer!

New York State Mortgage Credit Certificate Program (MCC)

Governor David Paterson has announced that New York will be offering a federal income tax credit to first-time homebuyers to encourage home sales in New York State. The New York State Mortgage Credit Certificate Program (MCC) will enable first-time homebuyers to claim a tax credit equal to 20 percent of their annual mortgage interest costs.  This could save the average homebuyer around $1,500 a year. The program expands the $8,000 First-Time Homebuyer Credit, which expires on November 30, 2009.

The New York State MCC can be used to reduce a homebuyer’s tax burden for every year the mortgage loan remains outstanding. With an MCC, 20 percent of the amount paid in mortgage interest can be used as a tax credit that can be deducted, dollar for dollar, from a homeowner’s federal income tax liability. The remaining 80 percent of the mortgage interest will still qualify as an itemized tax deduction, as long as there is sufficient federal tax liability.

Prospective homebuyers will need to apply for the Mortgage Credit Certificate when they apply for a fixed rate mortgage at a participating lender.  Applicants need to meet SONYMA's income and purchase price limits.  These guidelines can be found at http://www.nyhomes.org.  However, if a homebuyer obtains a SONYMA  mortgage, they will not be eligible to apply for the Mortgage Credit Certificate tax credit.

MCC Applications should be available at participating lenders by early September.  Homebuyers who have already obtained a mortgage commitment can apply at their bank for the MCC if they have not already closed on their new home.

Borrowers who are approved for an Mortgage Credit Certificate can take advantage of the credit when they file their annual federal tax return. 

Click here for more information.