State Employees’ Credit Union (SECU) members looking to make their first home purchase are finding that North Carolina Housing Finance Agency’s (NCHFA’s) Mortgage Credit Certificate (MCC) program can bring valuable financial benefits in the form of a federal income tax credit. Since 2009, over 200 SECU first time homebuyers have benefited from the program, putting more money in their pockets and making their mortgage payments more affordable. In 2012, the estimated financial benefit to participating SECU members averaged nearly $1,100 per household!
Authorized by Congress in the 1984 Tax Reform Act, the MCC program is offered in North Carolina by NCHFA to eligible borrowers through participating lenders such as State Employees’ Credit Union. The MCC allows qualifying buyers to 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 are also eligible to claim an interest deduction on the remaining 70% of the interest they pay. Eligible to first time homebuyers who meet sales price and income limits (based on region), the MCC can be used with most fixed rate mortgages, as well as SECU’s member-friendly 2-year Adjustable Rate Mortgage (ARM).
SECU’s Chief Lending Officer, Jerry Harmon comments, “NCHFA’s Mortgage Credit Certificate program helps qualified borrowers keep more of their hard-earned income through decreased tax liability, while they acquire their dream of first time homeownership. 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. MCC is a service that can make a positive financial difference and we are happy to work with NCHFA to make this happen for all eligible SECU members.”