Homebuyers looking for an extra tax break are in luck — New Hampshire Housing has launched a new program designed to save first-time homebuyers up to $2,000 a year on their federal income taxes, making homeownership more affordable for low- to moderate-income buyers in the Granite State.
The new Home Start Homebuyer Tax Credit Program allows eligible first-time homebuyers throughout the state, and existing owners purchasing homes in certain areas, to turn a percentage of the mortgage interest they pay into a dollar-for-dollar tax credit against their federal income tax liability for the life of the mortgage loan. Participants also may be eligible to take a federal deduction on the remainder of their mortgage interest paid in addition to the maximum $2,000 Homebuyer Tax Credit.
The Home Start Homebuyer Tax Credit Program allows participants to save more by giving them the opportunity to claim a tax credit for as much as $2,000 each year for as long as they have their original mortgage, are still paying mortgage interest, and use the home as their primary residence.
Program participants also don’t have to wait for a federal tax refund check to realize their tax credit benefit; instead, they can adjust their tax withholdings so they receive more take-home pay each month. They may then choose to use that extra money each month to help make mortgage payments.
The Homebuyer Tax Credit can be combined with New Hampshire Housing’s mortgage programs, which offer additional benefits such as cash assistance for down payment and closing costs, and free homebuyer education.
“New Hampshire Housing’s mission is to promote affordable housing opportunities for Granite State residents,” said Ignatius MacLellan, managing Director, Homeownership Division at New Hampshire Housing. “Our new Homebuyer Tax Credit Program is a new and effective way to meet that goal with a federal funding source that works well in the current economic environment.”