Delaware First-Time Homebuyer Tax Credit
Delaware First-Time Homebuyer Tax Credit
The Delaware First-Time Homebuyer Tax Credit is a federal income tax credit designed to help make home ownership more affordable to qualified homebuyers. Homebuyers who elect to use this program are eligible to claim a portion of the annual interest paid on their mortgage as a special tax credit.
The annual amount of the credit cannot exceed $2,000 a year. The credit is available as long as there is a mortgage loan on the property and the homebuyer occupies it as their primary residence.
The amount of the federal tax credit will be based on a percentage of the mortgage interest paid each year. For the Delaware First-Time Homebuyer Tax Credit it is 35% of the interest paid.
Homebuyers must use an approved mortgage lender for this program.
At settlement those approved for this program will sign an affidavit allowing them to claim the tax credit. If that is not signed at closing, buyers can not go back later to apply, so it is important if you are planning to use this program to have it in place prior to closing on your property!
Click here for the details concerning this tax credit.
Learn who is eligible, property qualification, how to apply, fees, and participating lenders.
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