New homebuyers can now reduce their tax liability with OHFA’s new Mortgage Credit Certificate

COLUMBUS, OH - February 17, 2009 - (RealEstateRama) — Ohioans can now buy a home and lower their tax liability with a Mortgage Credit Certificate (MCC) from the Ohio Housing Finance Agency (OHFA). OHFA has launched its MCC Program to encourage new homeownership, allowing qualified first-time homebuyers to take a direct tax credit for a portion of their mortgage interest up to $2,000 per year for the life of the mortgage.

“The MCC Program is just one of the ways OHFA is continuing to provide resources that make sustainable, quality housing available to homebuyers,” said Doug Garver, Executive Director of the Agency. “By using this credit, Ohioans can reduce their tax burden and keep more of their hard-earned money.”

The MCC Program provides for a credit between 20 and 30 percent, depending on whether the property is in a target area, non-target area, or if it is a Real Estate Owned property. Borrowers are eligible for the MCC Program by being approved for a mortgage and meeting certain requirements, including income limits, maximum home sale price, limited prior homeownership interest, and purchasing the home as a primary residence.

In addition, the recently passed American Recovery and Reinvestment Act provides an $8,000 tax credit for homes that are closed between January 1, 2009 and November 30, 2009. This credit can be used in conjunction with OHFA’s First-Time Homebuyer Program or the MCC Program.

MCCs are available on a first-come, first-served basis through participating lenders and are not transferable. To locate a lender in your area, visit the Homeownership section of OHFA’s web site at www.ohiohome.org.

OHFA utilizes federal and state resources to provide housing opportunities for families and individuals through programs designed to create, preserve, and manage affordable housing throughout the State of Ohio. The Agency is a self-supporting quasi-public agency governed by an eleven-member board, nine of whom are appointed by the Governor and confirmed by the Senate. Two additional seats on the board, by statute, are reserved for the Director of Development and the Director of Commerce, or their designees, and both serve as ex officio voting members.

 

 

 

 

USGBC - U.S. Green Building Council

HUD - U.S. Department of Housing and Urban Development

NAR - National Association of REALTOR

RealtyTrac

FHFA - Federal Housing Finance Agency

Freddie Mac

MBA - Mortgage Bankers Association