This incentive is in addition to the $8,000 First Time Home Buyer Credit:
The State of New York Mortgage Agency, or SONYMA, is now offering a Federal income tax credit to first-time homebuyers in New York State. The aim is to make it easier than ever for first-time homebuyers to afford a new home. The tax credit, called a Mortgage Credit Certificate (MCC), will be equal to 20% of a home-owner’s annual mortgage interest costs. Here is how it works:
• Apply for a Mortgage Credit Certificate at the same time you apply for a mortgage from a
lending institution participating in SONYMA’s MCC program.
• If you are approved for an MCC, take a dollar-for-dollar tax credit equal to 20% of your
annual mortgage interest when you file your Federal income tax return.
• The remaining 80% in annual mortgage interest costs remains tax deductible.
• The credit may be taken annually for the life of the mortgage, as long as homebuyers occupy
the property as their principal residence.
For example, if you have a $200,000 mortgage and pay 5.5% in interest you would pay $10,933 in interest in the first year of your mortgage. You can claim 20% of the interest, or $2,186, as a direct tax credit. This will free up $183 per month to help you make your loan payments. Keep in mind that each year the amount of interest you pay on the loan will decrease slightly, which means your mortgage credit will be reduced slightly each year.
SONYMA household income limits and purchase price limits apply.
Purchase Price Limits
| 1 Family New and Existing |
2 Family New* and Existing** |
|||||
| County | Non-Target | Target | Non-Target | Target | ||
| Rockland | $637,640 | $779,340 | $816,290 | $997,680 | ||
| Westchester | $637,640 | $779,340 | $816,290 | $997,680 | ||
| 3 Family Existing** | 4 Family Existing** | |||
| County | Non-Target | Target | Non-Target | Target |
| Rockland | $986,720 | $1,205,990 | $1,226,270 | $1,498,770 |
| Westchester | $986,720 | $1,205,990 | $1,226,270 | $1,498,770 |
* For target areas only. New Two Families are not permitted in non-target areas.
** 2, 3, and 4 Family Existing homes must be at least 5 years old as of the loan application date.
Income Limits
| 1 & 2 Person Household** | 3+ Person Household** | |||
| County | Non-Target | Target | Non-Target | Target |
| Rockland | $122,400 | $122,400 | $142,800 | $142,800 |
| Westchester | $126,360 | $126,360 | $147,420 | $147,420 |
* These limits also apply to the Remodel New York and Construction Incentive Programs.
** Household size is determined by the number of persons in the household including children, regardless of age. For example, a married couple with one two-year old child would use the 3+ person household limit.
For more information on this program click here or to get in touch with a local mortgage representative please contact me
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