As the housing market continues to become more difficult, new homeowners should be aware of tax credits to help with rising costs.
Many who have never owned a home may not know about the $2,000 tax credit they can claim.
This is through a mortgage credit certificate, a federal tax credit that makes it more affordable for people to buy homes.
The credit can be used every year.
How much do homeowners save with this tax credit?
What you get in the form of a credit will vary by state.
The typical credit is worth 20% to 40% of what you pay in mortgage interest.
The most you can get is $2,000 each year.
The credit can be obtained through some housing finance agencies.
Eligibility requirements to be a homeowner that qualifies
- First time homebuyer
- Moderate or low income based on the AMI
- Home purchase isn’t above a certain limit
- It’s your primary residence
- The mortgage lender you use is approved through the HFA
You can claim this credit by submitting Form 8396 with the IRS.