- September 10, 2025
- Posted by General Electric Credit Union
- 4 read
Homebuyer Tax Credits: What’s Available in 2025?
Buying your first home is a milestone worth celebrating—but it’s also one of the biggest financial decisions you’ll ever make. If you’re a first-time homebuyer in Ohio, Indiana, or Kentucky, you might be wondering what tax breaks or incentives are available to help lighten the load. Let’s break it down.
The $8,000 first-time homebuyer tax credit: A look back
Back in 2008, the federal government introduced a tax credit of up to $8,000 for first-time homebuyers as part of the Housing and Economic Recovery Act. It was a powerful incentive during the financial crisis—but it officially expired in 2010 and has not been reinstated since.Will the first-time homebuyer tax credit pass again?
There’s been buzz about a new version of the credit. The First-Time Homebuyer Tax Credit Act has been proposed in Congress multiple times, most recently offering up to $15,000 in refundable tax credits for eligible buyers. However, as of now, this bill has not passed into law, and there’s no set timeline for its approval.Current tax breaks for homeowners
Mortgage interest deduction1
One of the most valuable tax benefits for homeowners is the mortgage interest deduction. If you itemize your deductions, you can deduct interest paid on up to:- $750,000 of mortgage debt (for homes purchased after December 15, 2017)
- $1 million if your mortgage predates that cutoff
State and local programs in Ohio, Indiana, and Kentucky
Each state offers its own set of resources for first-time buyers:- Ohio Housing Finance Agency (OHFA): Offers down payment assistance, reduced-rate mortgages, and tax credits through the Mortgage Credit Certificate (MCC) program.
- Indiana Housing and Community Development Authority (IHCDA): Provides programs like First Place and Next Home, which include down payment assistance and affordable loan options.
- Kentucky Housing Corporation (KHC): Offers down payment assistance and fixed-rate loans for first-time buyers and repeat buyers alike.
Making homebuying more affordable: Smart moves for first-time buyers
Buying your first home doesn’t have to break the bank. As a credit union serving parts of Ohio, Indiana, and Kentucky, General Electric Credit Union (GECU) specializes in helping members make smart, affordable choices. Here are a few ways first-time buyers can reduce costs and increase confidence.Choose a credit union with competitive mortgage options
Unlike big banks, credit unions are member-owned and focused on your financial well-being. At GECU, we offer:- Low down payment options, including FHA loans.
- VA loans with no down payment for eligible military members.
- Doctor loans with up to 100% financing and no private mortgage insurance (PMI).
- New construction loans with extended rate lock ups. This financing option is also a construction-to-permanent loan, which means you’ll only need to close one time! No double closing like with a traditional construction loan.
- Flexible terms and no prepayment penalties.
Look for low closing costs and rate reductions
Closing costs can add thousands to your upfront expenses. GECU offers closing costs as low as $0 on select loans and rate reduction options to help you lock in a lower monthly payment. These savings can make a big difference—especially for first-time buyers working with tight budgets.Use financial tools to plan ahead
Understanding what you can afford is key. GECU provides free mortgage calculators to help you:- Estimate your monthly mortgage payment
- Compare loan options
- Determine how much home you can afford