Ohio Mortgage Credit Certificate is a product that is backed by the federal authorities which helps families realize their dream of owning a home. The Ohio Mortgage Credit Certificate program provides a tax deduction which reduces the amount of tax liability that a home buyer remits to the deferral authorities hence making money available which can be used to offset the mortgage loan.
How Ohio Mortgage Credit Certificate Works
Homeowners who qualify for the program get a mortgage-credit -certificate from Ohio HFA which can be used towards reducing the amount of tax burden that is payable every year for the entire life of their mortgage loan. With MCC, a percentage of the mortgage interest that you pay becomes the tax credit which can be deducted on dollar to dollar basis from your tax obligation or liability at the end of the year. Provided that you have sufficient tax liability on your mortgage interest, you can be pretty sure that you will continue claiming the tax credits.
But to qualify for Ohio Mortgage Credit Certificate tax credits, the buyer must meet certain conditions – he or she must be a first time home buyer and must have not owned any home for the last three years. The home to be bought should be within a listed area because homes that are situated in certain areas qualify. The borrower of the house loan must occupy the house as a primary residence for all the years where the Ohio Mortgage Credit Certificate claims are to be made. Moreover, it’s important that the borrower’s income limit be within the prescribed limits. The properties that qualify for the mortgage are new or existing family-units or planned units within the state of Ohio, modular, manufactured or other properties that are permanently fixed on the ground. The house must remain owner occupied for the entire 30 years when the loan is being amortized.