MORTGAGE CREDIT CERTIFICATES IN MN
First-time Homebuyer Tax Credits
With a tax credit through the Mortgage Credit Certificate program in Minnesota, you claim up to 25% of the mortgage interest you pay as a federal income tax credit; up to $2,000 per year. This can add up nicely in tax savings over the life of your loan. **
Combine a a Mortgage Credit Certificate (MCC) with your first time home buyers loan for additional savings on your new home
Three easy application options:
2) Call (651) 552-3681
3) Visit us in our St Paul, MN Office
To be eligible for a Mortgage Credit Certificate, you must:
- Be a first-time homebuyer (or have not owned a home in three years)
- Qualify for a home mortgage
- Meet income limits
- Plan to live in the home as your primary residence
- Have a federal income tax liability (owe taxes)
- MCC program is no longer available in conjuntion with the MN Housing Finance Agency firs ttime home buyers program (as of Feb 2017)
Next Steps:
- Contact a tax professional to see if this program would benefit you.
- Apply for a mortgage loan online, or call (651) 552-3681
- Tell your Loan Officer you want to see if you qualify for the Mortgage Credit Certificate
- Apply for the MCC Program before your mortgage closes.
- A Homebuyer education class may be required for some mortgage programs.
Frequently Asked Questions
How much money can I save with an
MCC?
Savings vary, depending on your loan amount, interest rate, and
tax bracket.
Example savings:
-
$175,000 loan amount at 3.50% interest
-
Maximum estimated savings over the life of the loan = $37,500 (for the most perfect client) for this example. Most people will see significantly less! **
No, the MCC reduces your federal income tax burden so if your tax liability is $0.00, the MCC will save you $0.00.
The actual amount that you owe the federal government, which they may collect from your tax withholdings from your paychecks or at tax time. Want to know what your tax liability was last year? Check your most recent tax return.
|
Form You Used
|
Line showing your
tax liability
|
|
1040A
|
line 35
|
|
1040EZ
|
line 10
|
|
1040
|
line 61
|
Can I still take the mortgage interest deduction on my income taxes?
Yes, you can deduct the remaining 55% of the mortgage interest paid.
How much help can I get for my downpayment and closing cost assistance?
You can get both an MCC and a down payment assistance loan. Contact your Loan Officer, or read more information here.
** Actual saving depends on multiple factors, including home mortgage interest rate, how much interest paid, and your overall federal tax rate. It is possible to get $0.00 in benefits.
HUD, The VA, and the USDA requires those who offer their mortgage loans go through a stringent approval process. We are an approved FHA, VA, and USDA mortgage lender. We are not acting on behalf of, or under the direction of the VA or the Federal Government. HUD / FHA and the VA do not lend directly to the public, only through approved lending institutions like Cambria Mortgage.