Download - Washington Mortgage Credit Certificate
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Mortgage Credit Certificate
Get additional tax credit on your new home mortgage! This is in addition to the $8,000 Federal Tax Credit!
• Converts 20% of your mortgage interest paid annually to a tax credit. The remaining 80%remains tax deductible.
This is an annual credit. This is not a one-time credit.
• You use the certificate as long as you own the home, so refinancing is an option. Does NOT preclude the Stimulus Tax Credit of $8,000 for First Time Homebuyers.
• Up to 15% of the home may be used for business.
• Can be used with any loan program (FHA, VA, FNMA, USDA) Credit can be used as income for a Conventional loan.
Credit can be used as a reduction to PITI for Government loans.
How to: • First you contact Linda or Ron to put you in touch with a participating mortgage
lender to determine eligibility. Availability is limited and it is not available to most lenders.
• You need to take a State Certified Homebuyer Course.
• You must receive the certificate prior to closing on your home. This is not retro-active to homes already purchased and closed.
• As a participating Homebuyer you will use your certificate each year that you file
taxes while living in that home.
Example of Benefit on a $300,000 home with a mortgage interest rate of 5%: (These are estimated figures. Each individual who utilizes this benefit should consult their tax advisor.)
$300,000 at a 5% rate is $15,000. $15,000 x 20% = $3,000
$3,000 would be your additional tax credit per year. $15,000 X 80% = $12,000
$12,000 would still be your tax deductible interest.
