WHEDA MCC Program (Mortgage Credit Certification)
WHEDA has yet another benefit aside from it’s low rates and no down payment. The Mortgage Credit Certification program. This is a program that allows first time home buyers to save additional money on their taxes.
How It Works
Let’s assume you buy a $150,000 home at 5% interest. That annual interest per year is about $7,500. You have the ability to write off a certain percentage of your regular mortgage interest on your itemized deduction worksheet. (consult an accountant for more information) With the WHEDA MCC program you are able to deduct an additional 25% of theat $7,500 per year. That’s an additional $1,875 per year you have as a write off on your federal income taxes.
Tax Credit versus Tax Deduction
A mortgage interest deduction differs from a mortgage tax credit in a number of ways. For example, all homebuyers, regardless of income may take a mortgage interest deduction, whereas tax credits are available only to holders of a MCC. The dollar value of a mortgage interest deduction depends upon their tax bracket. If they are in a 15 % tax bracket, they will save 15 cents in taxes for each dollar of mortgage interest paid. With a MCC, an applicant will save $1 for each $1 of credit received. Using a MCC and itemizing the deductions on the Form 1040, Schedule A, will reduce the mortgage interest deduction by an amount equal to the mortgage tax credit claimed.
source: file:///C:/Users/Owner/Downloads/Tax%20Advantage%20MCC%20Guide%2011092018.pdf
Hopefully this helps you make a decision as to what home loan product is best suited for your needs. If you have any further questions you can contact me vi my email jscott@execmort.com or the contact information below. If you have interest in applying for the WHEDA MCC program you can do so by clicking here.
Thank you!
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Justin Scott
Loan Officer
NMLS 878581
- C) 920-530-4484
- O) 920-490-8823
- F) 920-490-8967
Executive Mortgage
NMLS 271650
909 . E Walnut Street
Green Bay WI 54301