What types of home-buyer tax credits are available?

In California, tax credits are available to homebuyers through both federal and state programs. For federal tax credits, the Mortgage Credit Certificate (MCC) Program has been available since the 1980s. This program allows first-time homebuyers to claim a federal tax credit equal to a percentage of their mortgage interest paid during the year. The amount of the credit varies from state to state and is based on household income. The State of California also offers a variety of tax credits for homebuyers. The Mortgage Interest Tax Deduction reduces homeowners’ taxable income with a deduction for the amount of mortgage interest they pay each year on their primary and secondary residences. The Tax Homeowners Property Tax Credit helps low-income homeowners and renters offset some of the cost of their property taxes. The Credit for Low-Income Housing provides financial assistance for individuals and families who qualify for a federal low-income housing program. Finally, the CalHome Program provides homebuyer assistance in the form of deferred-payment loans and grants. To be eligible, first-time homebuyers must qualify for a first mortgage and must have a median income below 80% of the median income in their area. The amount of the loan or grant varies by county and can be used to cover the costs of down payments and closing costs.

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What types of home-buyer tax credits are available?

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