The Alabama Housing Finance Authority has officially opened its Mortgage Credit Certificate program to more home buyers! This expansion of the AHFA’s mortgage savings program is all thanks to new and increased income and sales price limits.
About the AHFA’s Mortgage Savings Program
First and foremost, let’s review what the Alabama Housing Finance Authority (AHFA) is. According to the Alabama Housing Finance Authority website, AHFA is dedicated to serving the housing needs of low- and moderate-income Alabamians by creating housing opportunities through affordable financing.
So, what exactly is the Mortgage Credit Certificate (MCC) program? The Mortgage Credit Certificate program is a savings option for Alabama homebuyers that provides a tax credit to reduce the amount of federal taxes owed by a percentage of the annual mortgage interest paid each year. The remaining annual interest can then still be claimed as a mortgage interest deduction on the homebuyer’s federal tax return.
Expansion of the AHFA’s Mortgage Savings Program
Set by the U.S. Department of Housing and Urban Development, the new income limits increased over 2022 by 8.2 percent due to increasing median incomes and economic gains.
Now, qualifying households can earn up to $111,440 annually, depending on location and family size.
In addition, the maximum sales prices for the home purchase has risen to $588,104 in “target” areas and $481,176 in “non-target” areas.
On an individual basis, the AHFA will verify each property’s location and apply the appropriate limit. This expansion of the AHFA’s mortgage savings program is huge and benefits many of MCC program participants.
The expansion of the AHFA’s mortgage savings program will ultimately save home buyers money and free up income to qualify for nicer homes.
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