Programs that Make it Easy to Own You might be surprised to learn that everyone, including Uncle Sam, wants to help you buy your first home. There are many programs available that make it easy and much more affordable to own than to rent. Mortgage Credit Certificates A Mortgage Credit Certificate is a 15-percent tax credit given to qualified first-time buyers. The income limit varies per county and funding for this program is not always available. If you secure a Mortgage Credit Certificate, you will receive a tax credit equal to 15 percent of the interest you pay on your mortgage. For example, if your interest rate is 7.5 percent on a $150,000 loan, you will pay about $11,250 in interest in your first year. The government will give you a tax credit equal to 15 percent of this interest ($1,687.50). A borrower may file a revised W-4 form through their employer, which lowers the amount of federal income taxes withheld throughout the year, giving him or her extra money in every paycheck. This is a wonderful program when it is available. To find out if the Mortgage Credit Certificate program is available in your area, contact your loan counselor at (916) 635-6737. Down-Payment Assistance Down-payment assistance is available in many counties for first-time home buyers. This assistance usually comes in the form of grants or loans. County Grants Some counties offer grants to low-income families to help cover the down payment and closing costs. For example, in Sacramento County, a single person making $31,500 or less can receive a $2,500 grant from the county to buy his or her first home. The income limit varies by household size. County Loans Some counties offer down-payment assistance programs that provide loans for a first-time buyer’s down payment and closing costs. These loans are generally provided at a low interest rate and are forgivable after a certain number of years. For example, in Sacramento County, a borrower can receive down-payment assistance that is forgivable after 10 years.