RALEIGH, N.C. (7/24/13)--In 2012, members of Raleigh, N.C.-based State Employees' CU buying their first home with SECU's program saved an average $1,100 per household in federal income tax credits by participating in the North Carolina Housing Finance Agency's (NCHFA) Mortgage Credit Certificate (MCC) program.
More than 200 SECU first-time homebuyers have participated in the program since 2009, said SECU.
The MCC program, authorized by Congress in the 1984 Tax Reform Act, is offered in the state by NCHFA to eligible borrowers through lenders such as SECU. Qualifying buyers can take a federal tax credit of 30% of the mortgage interest they would pay annually, up to $2,000, each year they occupy the new home.
Homeowners also are eligible to claim an interest deduction on the remaining 70% of the interest they pay, said SECU. Those who meet regional sales price and income limits can use MCC with most fixed-rate mortgages, as well as with SECU's two-year adjustable-rate mortgage.
The program "helps qualified borrowers keep more of their hard-earned income through decreased tax liability, while they acquire their dream of first-time ownership," said SECU Chief Lending Officers Jerry Harmon. "As a trusted financial provider for our member-owners, it is vital that we bring awareness to and assist members with the programs and services that can help strengthen them financially," he said.