Homebuyer Tax Credit FAQs

welcome-aThe Homebuyer Tax Credit (HBTC) program offers great savings for New Hampshire homebuyers, but it also generates a lot of questions. If you’re trying to figure out if the Homebuyer Tax Credit is right for you, or if you have questions about how to use your certificate, read on for some tips. Our online class is also available to help you along the way.

Isn’t this the same federal homebuyer tax credit as in the past? What makes this one different?

The main benefit of our Homebuyer Tax Credit is that, unlike past federal tax credits for homeowners, it can be used every year for the life of your mortgage loan. That means up to $2,000 a year for the life of your loan back in your pocket!

Is this program available for current homeowners?

The Homebuyer Tax Credit is targeted to first-time homebuyers (have not owned a home in the past three years), but this requirement is waived if you are purchasing a home in what is referred to as a “targeted area.” You can find an updated list of targeted areas on our website. Currently, there are 15 cities and towns on the list.

How do I get my HBTC?

You can go directly through New Hampshire Housing or work with one of our Participating MCC Lenders to apply for and receive your HBTC. Remember, you must meet certain eligibility guidelines and take our online course in order to qualify.

When should I apply for my Homebuyer Tax Credit?

The HBTC must be issued in connection with the purchase of your home.  Therefore, you should apply for the credit as close as possible to when you are closing on your mortgage loan.

I have my certificate. How do I realize my savings?

When you file for your tax return, you must file IRS Form 8396 along with your federal return  in order for the IRS to properly give you your credit. Consult with your tax professional about any questions regarding how to best file for and receive your Homebuyer Tax Credit.

Question not answered here? Feel free to call us at 1-800-649-0470. We are happy to help. Your tax professional can also help you determine if the HBTC is right for you.

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