NH Housing is offering a Home Buyer Tax Credit of up to $2000/year for first time buyers (or second time buyers buying in targeted communities). You are considered a first time buyer if you haven’t owned a home in the past 3 years.
In order to participate, you must apply for a Mortgage Credit Certificate through NH Housing at the time you are purchasing your home. Merrimack Mortgage Company can help you with this application. There is a one-time fee of $550 at closing(discounted to $300 if your mortgage is a NH Housing product). For Veterans this fee is waived!
The home buyer tax credit is a direct dollar-for-dollar reduction in your federal taxes — up to $2000/year!! You receive the credit for as long as you continue to live in the home and remain eligible.
The following targeted areas allow the tax credit to go to people who are not first time buyers: Berlin, Claremont, Concord, Dover, Gofftstown, Laconia, Lancaster, Littleton, Manchester, Newmarket, Pittsfield, Portsmouth, Rochester, Somersworth & Whitefield.
If you are eligible, apply and are approved you will get an MCC (mortgage credit certificate) which allows you to claim the home buyer tax credit on your federal tax returns every year you live in and own the house and remain eligible. To receive your home buyer tax credit you will file IRS form 8396 when you do your tax returns. Our goal is to help everyone who is eligible to take advantage of this awesome opportunity!