The Iowa Finance Authority is making home ownership easier for first time homebuyers, veterans and individuals interested in buying a home in targeted areas. The Take Credit Mortgage Credit Program will assist approximately 400 homebuyers in 2015 by reducing their federal tax bills.
How Much Money Can I Save?
The IFA website says, “The Take Credit program allows eligible borrowers to receive a Mortgage Credit Certificate (MCC) from the [Iowa Finance Authority], which awards a tax credit value of 50 percent of annual mortgage interest paid (up to a maximum of $2,000 per year) to be taken as a credit against federal income tax liability for the life of the loan, up to 30 years.” You can even carry over the credit for up to three years if the credit amount is more than your current year’s tax liability.
Am I Eligible For This Program?
There are income and purchase price limits that vary by county and home size.
- An individual/couple in Linn County is eligible for the program if they earn no more than $74,500.
- If the same couple is interested in moving to the targeted areas in Linn County, they could earn $89,400 and still be eligible for the program.
- The limits are higher as household size grows.
Here’s an easy survey to help you determine if you are eligible.
What Kind of Home Can I Purchase?
The home purchase price can be no more than $250,000 in a non-targeted area and $305,000 in a targeted area.
The targeted areas in Cedar Rapids are located: (please click on links for a detailed map)
- Along 1st Ave SE from downtown, including Coe College and Polk Elementary
- From 1st Ave SW to 8th Ave SW, from the river almost to Kernel’s Stadium
- The Czech Village/Oakhill Jackson area.
If you are interested in taking a look at the homes in this area, just contact me and I can send you the current listings so you can determine if the targeted areas would be good fit for your family.
I Am Eligible. Can My Lender Get Me This Deal?
Not all lenders participate in the program, so if you meet the eligibility guidelines, check this list to make sure that your lender can help you out. I would be happy to refer you to lenders with whom my clients have successfully worked in the past.
Remember that program funding may run out at any time, so check with your lender to make sure you don’t miss out.
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