North Carolina Mortgage Credit Certificate

North Carolina Mortgage Credit Certificate is a state backed program which seeks to reduce the amount of federal tax that a person must pay, therefore freeing up income so as to qualify for a home mortgage. This program mainly targets first time home buyers and the home’s purchase price must be within the limits set by North Carolina federal taxation laws and the MHC guidelines.

North Carolina allows home buyers to make a claim on itemized federal-income-tax deduction for interest that is paid on mortgage loan. The program offers a dollar for dollar deduction of the buyers tax liability, the specific amount payable depends on how much was borrowed for the home loan.

To qualify for the MCC program, the applicant must be a first time home buyer or someone who has not owned interest in a residential property for the pat three years. The annual household income of the applicant should not exceed the limits that have been published by the state government. Moreover, the home which is to be bought using the mortgage must be situated within a certain income area. However, first time home buyers are mostly exempted from what is commonly referred to as “target” areas.

Moreover, there are a few requirements which North Carolina Mortgage Credit Certificate must fulfill. The mortgage is amortized for a period of 30 years, the property must be owner occupied, should be a single family reside. If the home is to be manufactured or fabricated, the owner must buy the land which the manufactured home will be placed. The borrower of the mortgage must avail important documentations such as Homebuyer Education Certificate which was obtained after completion of face to face or online lessons, d federal income-tax-returns for at least three years and a sales contract that offers adequate description of the property.