NH Housing is offering a Home Buyer Tax Credit of up to $2000/year for first time buyers (or second time buyers buying in targeted communities). You are considered a first time buyer if you haven’t owned a home in the past 3 years.
In order to participate, you must apply for a Mortgage Credit Certificate through NH Housing at the time you are purchasing your home. Bookend LendingMortgage Company can help you with this application. There is a one-time fee of $450 at closing (discounted if your mortgage is a NH Housing product). For Veterans this fee is waived!
The home buyer tax credit is a direct dollar-for-dollar reduction in your federal taxes — up to $2000/year!! You receive the credit for as long as you continue to live in the home and remain eligible.
Income Limits apply and maximum sales prices apply. Click here for pdf: HBTC_Income_and_Purchase_Price_Limits
For most areas the income limit for a home buyer tax credit in a 1 – 2 person household is $96,700 and the sales price limit is $290,000.
For households that have 3+ persons the income limit for a home buyer tax credit is $111,200 and the sales price limit is $290,000.
In “Targeted Communities” the income limit is higher and the max sales price limit is $360,000. Hillsboro County has a sales price limit of $300,000. Rockingham & Stafford Counties also have higher income and sales price limits.
The following targeted areas have higher income and sales price limits and allow the tax credit to go to people who are not first time buyers: Berlin, Claremont, Concord, Dover, Gofftstown, Laconia, Lancaster, Littleton, Manchester, Newmarket, Pittsfield, Portsmouth, Rochester, Somersworth & Whitefield.
If you are eligible, apply and are approved you will get an MCC (mortgage credit certificate) which allows you to claim the home buyer tax credit on your federal tax returns every year you live in and own the house and remain eligible. To receive your home buyer tax credit you will file IRS form 8396 when you do your tax returns. Our goal is to help everyone who is eligible to take advantage of this awesome opportunity!
