First Time Buyer MCC Tax Credit for North Carolina Buyers

MCC Tax Credit – Up to $2000 Per Year!

We offer several low to no down payment options for first time buyers. Additionally, first time buyers may qualify for an MCC Tax Credit. Even other buyers on occasion! This benefit offers a true bottom line income tax credit up to $2000 each year. The tax credit enhances the affordability of a primary residence purchase in NC. So lowering income taxes makes home buying more affordable.

You Could Benefit from an MCC Tax Credit if…

  • First time buyer – not owned a principal residence in 3 years
  • Buying a home in North Carolina
  • Purchasing a primary residence
  • Under the required county household income limit
  • Buying a single family detached, townhome, off-frame modular, or approved condo

So if you meet the above, make sure to ask about this tax credit. Furthermore, there are scenarios that allow exceptions to these basic guidelines! Read below for qualification.

NC Housing Finance Agency allows us to offer this great tax credit. Additionally, we also offer the NC Housing Finance Agency down payment assistance program as well.

MCC Tax Credit Program Features:

  • Income limits for each NC County. Click here for the income limits.First time homebuyer MCC tax credit in NC
  • May combine with NC Home Advantage with down payment assistance
  • Attach to USDA, VA, FHA, or conventional loans
  • May lower borrower debt ratio for better qualification
  • Used homes = 30% credit, New homes = 50% credit
  • $775 fee charged for the tax credit. One-time fee. First year credit often exceeds the cost. Seller could even pay cost!
  • $245,000 maximum purchase price

Why choose an MCC Tax Credit and Team Move OVM?

Team Move loan officers are approved and certified to offer NC Housing Finance Agency products. Therefore, our qualified buyers may take advantage of this helpful tax credit. As a matter of fact, the credit is a true bottom line dollar for dollar reduction in tax liability. As shown above, this tax credit can be up to $2000 per year. Although, the amount depends on the interest rate, loan size, and whether the house is new or used.

The formula for the annual tax credit is:

Loan amount * Interest Rate * Tax Credit Percentage = Potential Annual Tax Credit

Example using MCC Tax Credit Calculation

Scenario: First time buyer, $150,000 loan amount, sample interest rate 4.5%, previously occupied home.

$150,000 * .045 = $6750 * .30 = $2025. Maximum tax credit is $2000, so $2000 would be the tax credit.

Exceptions to the first time buyer requirement

These buyers can still receive an MCC Tax Credit! So, the first time buyer requirement could be waived if…

  1. Home is in a designated Targeted Area. See the targeted areas in NC here
  2. Buyers owned a mobile home. But the mobile home was not permanently attached
  3. Owners of rental property, as long as they have not lived in the property for the last 3 years
  4. Buyers paying off a construction loan with a term not to exceed 24 months
  5. A separated/divorced buyer who has not occupied the marital home within the past 3 years
  6. The buyer is a Veteran. Veterans must have served active duty in the US Armed Forces or Reserves. Additionally, he/she must be discharged or released under conditions other than dishonorable. Finally, there is a one-time nationwide exemption

In conclusion, our goal is to promote homeownership in NC. Therefore, we gladly offer this tax credit to qualifying buyers. Keep in mind, this tax credit is only available on a purchase. Therefore, once the home is owned, an owner may not apply for the MCC tax credit. We hope you found this helpful. So, give us a call to learn more and read other first time buyer tips below.

Read Lots More Mortgage Tips For First Time Buyers Here


What Our Clients Think

Russell Is A True Professional

Russell is a true professional who truly enjoys helping other people. Russell and his team will go above and beyond to take care of your mortgage needs whether you are building, buying or refinancing. If you are looking for mortgage options I am confident that you will find that Russell and his team are the best in the business offering you good sound advice and the expertise to help you through the mortgage process.

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Whiteville, NC
July 21, 2019

He Was A Huge Asset!

Russell was an huge asset to my husband and I when we purchased our home! He made the process incredibly seamless.Everything went off without a hitch on his end. My parents recommended him to us, and we hope to use him again for a future home purchase.

Vi C.
Raleigh, NC
July 19, 2019

I Would Recommend Him To Anyone

Russell helped me finance the purchase of my first home, and after working with him, I would recommend him to anyone. The property I had been renting was being foreclosed on, and I was given almost no notice to vacate, so I needed to find something quickly. Russell and his team were extremely attentive and diligent throughout my search, reviewing each property I considered and giving me estimates on what my monthly payments would be for each, which helped me greatly to facilitate a quick decision. Russell was a Superhero when it came to exploring different financing options, and finding something that would not only work for me, but with a better interest rate than I expect I would have gotten elsewhere. He always seemed to be available when I needed him, and he was always on top of everything throughout the entire process. I sincerely hope I do not need another mortgage anytime soon, but if I do, I know for sure who I will be going to! Thank You for Everything, Russell!

Vanessa K.
Wilmington, NC
July 21, 2019

Always Professional And Responsive
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I had the pleasure of working with Russell and Amy on a transaction that I thought was “dead in the water”. Their team had actually been recommended by another agent who had used their services and thought they might be able to assist my buyer and me. To my surprise, they were able to provide the kind of assistance that resulted in a successful closed transaction. Russell and his team were always professional and responsive to our every request and need. There was never a time when we called that they did not respond immediately. My client and I were thrilled that they were able to get us closed when we both thought that all hope was lost. Today, my buyer is the proud owner of her first home, due in no small part to the hard work, knowledge, and dedication of this team. I am more than satisfied with the outstanding service that I and my client received, and will not hesitate to refer them to other clients, or use them whenever I can.

Pat Heath, REALTOR ®
July 21, 2019

Someone You Can Trust In The Mortgage Industry

Russell has always been someone you can trust in the mortgage industry. He goes above and beyond for his clients, while also continuing to perform his work with integrity. His teams have always produced great results and are very good to work with.

Michael B.
Burgaw, NC
July 21, 2019

Dedicated Mortgage Professional
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Russell is a dedicated mortgage professional with a high level of integrity who, since 2010, has assisted several of my buyers with obtaining a mortgage. In addition to having an outstanding knowledge of the business, Russell is honest, trustworthy, realistic about what it takes to get a loan closed and does it in a timely manner. I highly recommend him for anyone in the market for a mortgage or refinance of their home.

Linda Mehner, REALTOR®
June 19, 2020

Knowledgeable, Professional, Prompt

It has been such a pleasure working with Russell Smith. He is knowledgeable, professional, prompt and goes out of his way to handle any issues that arise. Buying a home is very stressful, he and his team took so much stress off of me during the entire process. Amy, who is the main point of contact, is a huge asset to the company, she helped me so much as well. I highly recommend them for all of your lending needs.

September 30, 2019

Professional and Helpful

My husband and I were recommended to Russell Smith, by our daughter and son in law. They had talked about what a good experience they had with Russell and Blue Ridge Bank, when they bought their home. We were very pleased with how everything was handled in a professional way. Russell was very helpful. We would certainly recommend Russell and Blue Ridge bank to others who may be buying a home or refinancing their present home mortgage.

Mary W.
Calabash, NC
September 30, 2019

You All Are Fantastic!!

I just wanted to say THANK YOU TO EVERYONE at Blue Ridge Bank Mortgage. I have never worked with a lender that has made a closing happen this fast and not to mention without any confusion. You kept everyone on the same page. You all are FANTASTIC!! I wish I could work with you on every closing.

Tammy Burgess
October 2, 2019

Highly Recommend Russell Smith

We could not have been more delighted and pleased to have Russell Smith and his team handle our recent home financing. From start to finish the process was fast, efficient and stressless. Our loan was fully approved well in advance of our closing date, and we look forward to having Russell help us with any future mortgage needs. Highly recommend Russell Smith and his team at Blue Ridge Bank!

Pat W.
Alberta, VA
October 2, 2019

Russell Smith & Amy Kurtyka: Best in the Business

Russell Smith and Amy Kurtyka are simply the best in the business. They completely saved us from disaster during our home purchase. My wife and I had been working for almost 2 months with another bank on a mortgage. 1 week before closing, despite meeting all conditions, the bank denied the loan. We were crushed and desperate. With us WAY too far along in the process to start the home search again, and with an anxious seller, there was only one person recommended to us: Russell Smith. They told us if anyone could pull it off it was Russell (and Amy). And they did it. IN 6 DAYS (start to finish) we were approved and were able to close on the original close date. No one can believe it, and neither can we. Russell and Amy worked well into the night every one of those 6 days and pulled off the impossible. Now we have our dream house. We will forever be in their debt'…'so to speak. I will never work with another bank. Blue Ridge Bank should be the first and last place you look to meet your lending needs. Don'’'t waste your time, go with the best.

Allen R.
Wilmington NC
October 9, 2019

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