We are all aware of the $8,000 tax credit for first time homebuyers.  But now there are a couple new programs that will give you a tax credit for the life of your loan on top of the $8,000 the first year.  First off you must buy within Dakota County, the city of St Paul or the city of Minneapolis.  There are some income restrictions, but essentially what this program will do will take 20% of the interest you pay for the year and convert that into a tax credit, yes dollar for dollar.  What this means for the buyer is that you will be able to take home more money every week in your paycheck.  I have included some links to each program, so take a look and see if you are eligible then give me a call and I can direct you to a lender who is able to offer you this loan. 

Dakota County Info

Minneapolis and St Paul Info

St Paul Heroes Program- for those of you that are in public service including health care workers

Here is a quick scenario on how the program works:

Loan Amount - $175,000

(% interest rate of the loan)  - 5.5%

First Year Interest - $9,566

(times MCC credit rate) - 20%

Approximate Amount of
Mortgage Tax Credit
$1,913

Over the life of the loan you will save $35,878 in taxes!  Remember, you can still deduct the remaining 80% of the interest, property taxes and PMI (private mortgage insurance).