First Time Home Buyer: SONYMA’s New Mortgage Credit Certificate program

New York State has just announced a new Federal tax credit for first-time home buyers.  The program will take effect in September.

• Mortgage Credit Certificates (“MCC”) issued by SONYMA enables first-time homebuyers to convert 20% of their annual mortgage interest into a direct income tax credit on their Federal Tax Return for each year of the life of their loan;

• MCCs can be used with any fixed-rate mortgage product offered by your lender;

• Borrowers with MCCs can also take advantage of the $8,000 Federal first-time homebuyer credit (if closed by November 30, 2009)

There are limitaitions  on income ( $92,160 for 1 & 2 person households, $102, 520 for 3+person hosueholds) as well as purchase price limits ( $637,640for co-ops and condos ). Here are the details.