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Maryland launches federal tax credit for new homebuyers

5/19/2014, 6 a.m.
Eligible homebuyers can claim a federal income tax credit of up to $2,000 for the life of their mortgage under ...
Raymond A. Skinner, Secretary of the Maryland Department of Housing and Community Development. (Courtesy photo)

— Eligible homebuyers can claim a federal income tax credit of up to $2,000 for the life of their mortgage under a new program unveiled by Maryland Department of Housing and Community Development Secretary Raymond A. Skinner.

DHCD's Maryland HomeCredit program provides eligible homebuyers with a mortgage credit certificate allowing them to claim a tax credit for some portion of the mortgage interest rate paid each year on their federal income tax returns.

"We believe the Maryland HomeCredit program will make homeownership that much more affordable, particularly for first-time homebuyers who are in many ways the foundation of the housing market," Secretary Skinner said at the annual conference of the Maryland Mortgage Bankers Association in Columbia.

The program launches June 1 and continues through December 15, 2015. A homebuyer purchasing a home during that period is eligible to claim 25 percent of the interest paid as a federal tax credit for every year the mortgage is outstanding and they live in the home.

The homebuyer must get the Maryland HomeCredit at the time they close on their mortgage. There are fees associated with the Maryland HomeCredit. Refinances are not eligible.

In addition, homebuyers can take advantage of the competitive rates and significant down payment assistance through the Maryland Mortgage Program, the state's flagship homeownership program, Secretary Skinner said.

To learn more and for a list of approved lenders, see DHCD's website: www.marylandgov/MDHomeCredit.