New program aims to give homebuyers a boost at tax time
BEDFORD, N.H. – March 21, 2013 – (RealEstateRama) — Homebuyers looking for an extra tax break are in luck—New Hampshire Housing has launched a new program designed to save first-time homebuyers up to $2,000 a year on their federal income taxes, making homeownership more affordable for low- to moderate-income buyers in the Granite State.
The new Home Start Homebuyer Tax Credit Program allows eligible first-time homebuyers throughout the state, and existing owners purchasing homes in certain areas, to turn a percentage of the mortgage interest they pay into a dollar-for-dollar tax credit against their federal income tax liability for the life of the mortgage loan. Participants also may be eligible to take a federal deduction on the remainder of their mortgage interest paid in addition to the maximum $2,000 Homebuyer Tax Credit.
Unlike the federal government’s first-time buyer tax credits, which was created as part of the economic stimulus package several years ago and provided new buyers with a one-time boost of $7,500-8,000, the Home Start Homebuyer Tax Credit Program allows participants to save more by giving them the opportunity to claim a tax credit for as much as $2,000 each year for as long as they have their original mortgage, are still paying mortgage interest, and use the home as their primary residence. Program participants also don’t have to wait for a federal tax refund check to realize their tax credit benefit; instead, they can adjust their tax withholdings so they receive more take home pay each month. They may then choose to use that extra money each month to help make mortgage payments.
The Homebuyer Tax Credit can be combined with New Hampshire Housing’s mortgage programs, which offer additional benefits such as cash assistance for downpayment and closing costs, and free homebuyer education.
“New Hampshire Housing’s mission is to promote affordable housing opportunities for Granite State residents,” said Ignatius MacLellan, Managing Director, Homeownership Division at New Hampshire Housing. “Our new Homebuyer Tax Credit Program is a new and effective way to meet that goal with a federal funding source that works well in the current economic environment.”
“Having programs like New Hampshire Housing’s Homebuyer Tax Credit helps reduce affordability barriers for first-time homebuyers,” said Maureen Lemay, Senior Vice President of Regency Mortgage Corporation in Hooksett. “By having up to $2,000 a year to put back into their pockets over the life of their mortgage loan, first-time buyers will be able to better afford the continuing costs of homeownership. If you combine the new Homebuyer Tax Credit with today’s low interest rates, and New Hampshire Housing’s downpayment assistance program, it is a win-win for most first-time homebuyers.”
The program has eligibility requirements, including income and purchase price limits and specifications about allowable property types. To help homebuyers understand this program, New Hampshire Housing has created a free online class that walks interested borrowers through how the credit works, how to qualify, and the steps to take to receive the tax credit and use it to its full advantage. More information about the Home Start Homebuyer Tax Credit Program and the online class can be found at www.GoNewHampshireHousing.com or by calling New Hampshire Housing at 1-800-649-0470.
About New Hampshire Housing Finance Authority: New Hampshire Housing Finance Authority is a self-supporting public benefit corporation. The Authority operates a number of rental and homeownership programs designed to assist low- and moderate-income persons with obtaining affordable housing. Since its inception, New Hampshire Housing has helped almost 40,000 families purchase their own homes and has been instrumental in financing the creation of more than 14,500 multi-family housing units. More information about its programs can be found on the agency’s website at www.nhhfa.org or www.GoNewHampshireHousing.com.
Phone: (603) 310-9255