Effective July 22, the maximum sales price in target areas is $316,177 and $258,690 in non-target areas.
The new income limits, also effective July 22, were released by the U.S. Department of Housing and Urban Development and are based upon the state's median family income, which rose to $55,500.
Home buyers can earn up to $83,250 in urban areas and $77,700 in rural areas, depending on family size and location.
The higher income limits benefit participants in the MCC program, which offers qualified buyers an annual tax credit to reduce the amount of federal taxes owed by a percentage of the mortgage interest paid each year.
By reducing the amount of federal income tax owed, MCCs give potential home buyers more available income to qualify for a mortgage loan. MCC recipients can change their income tax withholdings to reflect the lesser tax amount so that fewer tax dollars are withheld from their regular paychecks, increasing their take-home pay.
MCCs are available with conventional fixed-rate, FHA, VA, Rural Development and privately insured mortgages as well as AHFA's Step Up program.