$2000 Recurring Annual Tax Credit for First Time Homebuyers & Vets in Palm Beach County

Why don’t more people know about this tax credit? It’s a big deal!

Palm Beach County Housing Finance Authority has a first time homebuyer program entitling recipients to take an annual federal income tax credit of up to $2000 EACH YEAR their mortgage is outstanding as long as they continue to live in the home. The Palm Beach County HFA MCC program offers 50% of the total mortgage interest paid each year as a tax credit, or $2,000, whichever is less. The remaining 50% can still be deducted on Schedule A of the homeowner’s federal tax return.

Application for the MCC Program must be made by a qualifying lender prior to closing on the home purchase. To qualify you must already have a fully executed sales contract and meet the program requirements listed below.

1) YOU MUST BE A FIRST TIME HOME BUYER OR VETERAN

Any ONE of the following qualifies:

• A person who has not owned and occupied their principal residence in the last 3 years
• A person who has never owned their principal residence
• A person purchasing a home in a Targeted Area
• Any Veteran who has been discharged other than dishonorably (does not need to be a first-time buyer)

2) THE PROPERTY MUST BE OF A QUALIFYING TYPE

Qualifying properties are new or existing, 1-4 unit, detached or attached, single family homes, condos, townhomes or manufactured homes. Mobile, recreational, seasonal, or other types of vacation or non-permanent homes do not qualify.

3) YOUR HOUSEHOLD INCOME MUST NOT EXCEED INCOME LIMITS

There are income limits in this program. You must include the income of everyone who will reside in the property who is 18 years of age or older (even if they will not be a party to the mortgage).

Total household income (all sources)
1-2 person household: total income must be < $86,760
3 or more person household: total income must be < $101,220

4) YOUR HOME PURCHASE MUST NOT EXCEED PURCHASE PRICE LIMITS

Qualified properties in the program have purchase price limits. Certain limited target areas allow for higher purchase prices.

Purchases in Non-Targeted Areas: purchase price must be < $391,153
Purchases in Targeted Areas: purchase price must be < $478,076

5) YOU MUST PAY A SMALL PROGRAM FEE AT CLOSING

At closing, lenders may charge a $375 MCC application fee to buyer or seller (it cannot be financed). $275 goes to eHousingPlus and $100 is retained by the lender.

6) YOU MUST GET YOUR MORTGAGE THROUGH A PARTICIPATING LENDER

The lender has to apply for this credit on your behalf. Please contact us for the name of a participating lender.

How it Works

At the end of each year, your mortgage company will send you a form 1098 to report the amount of mortgage interest you paid that year. If you itemize deductions on your tax return (using Schedule A), that full amount is a typical deduction of your taxable income. Under this program, you can take half of that amount (up to a maximum of $2000) as a CREDIT instead of a deduction - for the life of the loan as long as you continue to occupy the property as a primary residence. Tax credits are dollar for dollar reductions in your tax owed, and $2000 is huge!

Example:
Mortgage amount $115,000
Interest rate 4.25%
Total interest pd 1st 12 mo $4850
Tax credit equals 50% of the total mortgage interest paid or $2000, whichever is less…
50% of the total interest is $2425
Maximum allowed credit $2000
Tax Credit = $2000

The remaining $2850 ($4850 - $2000) can still be claimed as a mortgage interest deduction on Schedule A.

The catch: There is one small possible catch… All or a portion of the tax credit may be subject to recapture if the residence ceases to be the taxpayers primary residence within the first full nine years of purchase (i.e. via sale or owner moving away and retaining it as a vacation home or investment).

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Peggy Berkoff & Andrea DiRico
North County Properties & Investments
19510 US Highway 1, Tequesta, FL 33469
561-427-0470 office, 561-427-0522 fax
Peggy 561-301-2243 cell/text, PBerkoff@NCPflorida.com
Andrea 561-543-8715 cell/text, ADiRico@NCPflorida.com

Search MLS in real time just like we do right from your iPhone,  no registration necessary...Visit http://www.NCPflorida.com for details or scan our free MLS search app to your mobile device right off this screen: 

Enter Code 9575

Home Prices Up Again In October – The Trend Continues

South Florida’s housing market keeps getting better. Strong demand and a shortage of inventory helped push prices higher in October. Palm Beach County’s median price was $222,500, up 23%. The county posted 1,159 home sales, a 22% jump.

Existing condominium sales rose 15%, and prices also increased, hitting $90,000 in Palm Beach county.

Values are continuing to increase this year as a lack of available properties gives sellers more negotiating power. At the end of October, Palm Beach County’s inventory was down 43 percent.

This data is totally in line with what we're experiencing in the marketplace. Homes priced under $200,000 and even between $200,000-300,000 are in high demand. Multiple offers are common again, and days on the market are shrinking too. Homes are selling faster than they did a year ago. Palm Beach County homes are selling in an average 106 days, compared with 113 a year ago.

Statewide, the median price for existing homes was up 9% to $145,000 from a year earlier. Home sales across Florida rose 25 percent in October.

Historically low mortgage rates eventually will rise with inflation, so it's important for buyers to improve their credit scores so they can qualify for mortgages before rates increase.

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Peggy Berkoff & Andrea DiRico
North County Properties & Investments
19510 US Highway 1, Tequesta, FL 33469
561-427-0470 office, 561-427-0522 fax
Peggy 561-301-2243 cell/text, PBerkoff@NCPflorida.com
Andrea 561-543-8715 cell/text, ADiRico@NCPflorida.com

Search MLS in real time just like we do right from your iPhone,  no registration necessary...Visit http://www.NCPflorida.com for details or scan our free MLS search app to your mobile device right off this screen: 

Enter Code 9575

Mortgage Debt Relief Act Expires 12/31 – WE CAN’T LET THIS HAPPEN!

If Congress does not act before the end of the year, millions of families who hold distressed properties could face a hefty tax bill for trying to modify their mortgage or to seek a short sale through their lender. Even those facing foreclosure will find themselves forced to pay a "foreclosure tax" if Congress doesn't act.  This is because the amount of debt forgiven by the lender would be considered "phantom income" to the borrower even though they never receive any payment from the lender. No taxpayer should be forced to pay tax on money they've already lost with cash they never received. We need no new obstacles that might throw the housing recovery off track.

We need to pull out all of the stops and get as many calls/emails to Members of Congress as possible.  Please write your Congressman and let them know how important it is that we extend this tax relief to underwater homeowners.  To find your representative in Congress, try the Congressman Finder at http://www.house.gov/representatives/find/

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Peggy Berkoff & Andrea DiRico
North County Properties & Investments
19510 US Highway 1, Tequesta, FL 33469
561-427-0470 office, 561-427-0522 fax
Peggy 561-301-2243 cell/text, PBerkoff@NCPflorida.com
Andrea 561-543-8715 cell/text, ADiRico@NCPflorida.com

Search MLS in real time just like we do right from your iPhone,  no registration necessary...Visit http://www.NCPflorida.com for details or scan our free MLS search app to your mobile device right off this screen: 

Enter Code 9575