Many people are not aware that there is still a tax credit available to first time home buyers.

The credit is known as a Mortgage Credit Certificate (MCC) in which the buyer receives a tax credit equal to 20% of the all the interest paid on a home loan for the life of the loan. The Tax Credit is a dollar-for-dollar reduction of the home owner's total federal income tax. The home owner still receives the standard tax deduction for the remaining 80% of mortgage interest.

QUESTION:  How much can a buyer spend on a house and still qualify for the tax credit?
ANSWER :  Up to $475K in King and 395K in Pierce and Snohomish counties.

QUESTION:  Are there any income restrictions?

ANSWER:  Up to $97,000 per year in King and Snohomish Counties and $90,000 in Pierce County with a 3 person family.

QUESTION:  How does my buyer get set up with this credit?
ANSWER :  Contact us to get referred to a Participating lender – the lender must be authorized by Washington State to offer this.

QUESTION:  Is this a loan?
ANSWER :  No this is not a loan it’s a tax credit that is set up separately from the mortgage loan.

QUESTION:  Is there a cost to the buyer to participate?
ANSWER :  Yes - there is a one time fee paid at escrow to Washington State of $650.  Seller, realtor or lender can pay this fee.


For more details and to find out how to apply, contact us today at 425-413-6428 or info@HappyHomeTeam.com