Homebuyer Tax Credit

The Homebuyer Tax Credit is a federal Mortgage Credit Certificate (MCC) program designed to provide you with a long-term tax benefit—to help you afford homeownership. For as long as you live in the home, an MCC program allows you to claim a tax credit for a portion of the mortgage interest paid per year up to $2,000, for the life of the original mortgage.

Note: The Homebuyer Tax Credit program can not be combined with our Home First mortgage programs.

 

To qualify for the Homebuyer Tax Credit, you must:

Reserve the credit through a New Hampshire Housing Approved Lender before purchasing the home.

Take our free online Homebuyer Tax Credit education course before you purchase the home.

Be a first-time homebuyer or purchasing in a targeted community.

Meet certain income and purchase price limits.

Want to reserve your Homebuyer Tax Credit?

Contact an Approved Lender

See if you’re eligible for the Homebuyer Tax Credit.

Select the statement that best describes you.

I have NOT owned a home within the past 3 years I HAVE owned a home within the past 3 years

Because you have owned a home within the past 3 years you are not considered a first-time homebuyer. However, you may still be eligible for the Homebuyer Tax Credit if you are purchasing a home in one of the targeted area towns listed.

If your income, based on your household size, and the price of your home doesn’t exceed the limits for this town then you may be eligible for the homebuyer tax credit.

Income and Purchase Limits

County

Town, City

, NH

Income Limits

Household size 1-2

Household size 3+

 

Purchase Price Limits

1-unit

 

Think you’re eligible? Take the next step.
Contact a participating lender to reserve your homebuyer tax credit with New Hampshire Housing.

Find a Participating Lender

Already working with a participating NH Housing lender?
Simply share your eligibility results with your participating lender to see if you qualify and learn about the next steps.

Have a lender, but not a participating lender?
If your current lender is unfamiliar with the advantages of the Homebuyer Tax Credit, please have them contact us by mcc program email or by phone at 1-800-649-0470 today to reserve your Homebuyer Tax Credit.

For eligibility requirements see FAQs below

Already know you’re eligible?

If you’re already working with a New Hampshire Housing lender and know you’re eligible, take the next step—completing the online Homebuyer Tax Credit course.

Once completed, you’ll need to provide your approved lender a copy of your certificate of completion and ask them to reserve your Homebuyer Tax Credit with New Hampshire Housing. It’s important to follow up with your lender to make sure they do, because you’ll only receive the credit if it’s reserved before you close on your new home.

Take the Course

Here’s why borrowers love the Homebuyer Tax Credit.

FAQs

How can I apply for the Homebuyer Tax Credit?

To apply for a Homebuyer Tax Credit, contact an Approved Lender or have your lender contact us.

How does the Homebuyer Tax Credit work?

The Homebuyer Tax Credit is a direct dollar-for-dollar reduction in your federal taxes worth 10% to 50% of the interest you pay on your mortgage. These are the key equations used to determine your credit:

  • Mortgage Amount x Loan Interest Rate = Annual Mortgage Interest Paid
  • Annual Mortgage Interest Paid x Homebuyer Tax Credit Rate = Annual Tax Credit

Check out your potential monthly savings over the first year using our Homebuyer Tax Credit Calculator.

How do I qualify for the Homebuyer Tax Credit?

To qualify for the Homebuyer Tax Credit you must:

  • Reserve your HBTC before you close on your new mortgage.
  • Complete the online HBTC training before you close on your new mortgage.
  • Be a first-time homebuyer (have not owned a home in three years) or are purchasing a home in a targeted area.
  • Be qualified for a new mortgage. MCCs cannot be used with existing loans.
  • Intend to occupy the home as your principal residence.
  • Must meet certain income and purchase price limits.
  • Have a tax liability to use the credit.
Can you save more than $2,000?

No, your annual tax credit savings cannot exceed $2,000. You also must have a tax liability to use the credit.

Are there fees associated?

Yes, view the Homebuyer Tax Credit fees. If you are combining your Homebuyer Tax Credit with a New Hampshire Housing mortgage product, the fee may be reduced.

What if I have more questions?

To find out more about our Homebuyer Tax Credit program, check out our Program Brochure and Fact Sheet.

If you have refinanced and you need to have your MCC reissued, see: Application package for re-issuing a Homebuyer Tax Credit.

For MCC recapture limits see: Homebuyer Tax Credit 2023 Recapture Limits (Effective 6/1/23) 

Have questions?

Call 1-800-649-0470 or send us a message.

Please note: In order to receive the Homebuyer Tax Credit you must reserve your MCC with us prior to your loan closing. It is your responsibility to make sure your lender properly requests and executes the MCC documents. New Hampshire Housing and your lender cannot predict what Congress or the IRS might do. Therefore, New Hampshire Housing and your lender make no promise about whether the MCC Program will actually be available to provide you with an MCC and its benefits. Therefore, New Hampshire Housing and your lender have no liability whatsoever for any action taken by Congress or the IRS.