New program available for 1st time buyers (or anyone who hasn’t owned in past 3 years). The interest rates are significantly better than anything Kentucky Housing Corporation offers and no gov’t bureaucratic hoop jumping.
Approved on ANY type of Mortgage. Conventional, FHA, VA and USDA.
Buyer gets a 25% mortgage interest tax CREDIT. Not a deduction. Big difference. CREDIT = actual net tax savings.
-Let’s say a buyer pays an average of $8K in mortgage interest over course of a year.
-They get a 25% State Tax credit, which comes to $2K annually
-minus the 25% deduction they would have received anyways of about $500 annually (assuming 25% tax bracket)
-$2K x’s 30 years = $60K
-minus $500 x’s 30 years = $15K
-Net Savings over life of Mortgage is $45K