Back in October, on Facebook and Twitter I linked to a Washington Post article on the new MCC Program offered by the Virginia Housing Development Authority, under which certain eligible homebuyers can get a credit against Virginia income tax for up to 20% of the mortgage interest they pay. The other 80% of mortgage interest is also deductible, but doesn’t qualify for the credit.
Eligibility requirements include:
-
Be a first-time homebuyer or not have owned a home as a primary residence within the past three years
-
Have income at or below the maximum limit in Northern Virginia, which is $121,900 for a household with two or fewer people
-
Purchase a home priced at or under $500,000
-
Live in the home as your primary residence
Over the years, we’ve seen several first-time homebuyer credit programs at the federal level, but to my knowledge, this is one of the first times it’s been tried at the state level. As with all tax credit programs, there are certain hoops to jump through in order to qualify, but the potential savings may make it worthwhile. For more information, visit the VHDA Mortgage Credit Certificate page.
