First-time home buyers in Wisconsin who meet eligibility requirements for income and home purchase price may be eligible for the Wisconsin Housing and Economic Development Authority (WHEDA) Tax Advantage, a Mortgage Credit Certificate Program. Eligible buyers may receive a maximum of $2,000 or 25% of the mortgage interest paid as a tax credit on their Federal income tax returns. Veterans are eligible to receive up to 40%. This tax credit is in addition to the normal mortgage interest deduction a homeowner may claim if they itemize on their Federal income tax returns.
Baylake Bank mortgage lenders are certified to offer this program to first-time buyers, as well as Veterans who do not have the requirement of being a first-time buyer. Although WHEDA is administering this program, a buyer can utilize this program even if they are obtaining conventional, WHEDA, FHA (Federal Housing Administration), VA (Veterans Affairs-Federal) or USDA (United States Department of Agriculture-Rural Development) type of financing.
Buyers receiving this tax credit are also required to complete a Homebuyer education class which covers use of and maintaining good credit, setting up a budget, and the process of purchasing a home. These classes can be completed through a HUD certified housing counselor, such as NeighborWorks Green Bay®, or online.
After closing, the buyer receives a certificate which they can retain and use to file their income tax returns every year. This credit can be received for up to 30 years or as long as they reside in their home. We recommend buyers consult their tax advisor for further details.
For more information about the WHEDA Tax Advantage Mortgage Credit Certificate Program, contact a Baylake Bank Mortgage Loan Officer.