Many first time home buyers took advantage of the $8,000 First-time Home Buyer tax credit and are getting ready to close on their new home. Did you know that there are other great incentive programs available to first time home-buyers? Below is some information from the Denver Office of Economic Development regarding the City and County of Denver 2009 Mortgage Credit Certificate (MCC) program. There are some limitations and qualifying factors - all of which can be found here.
The MCC program allows qualifying borrowers to receive an annual federal income tax credit equal to 20% of the annual interest they pay on their mortgage loan. A tax credit enables a taxpayer to subtract the amount of credit from his or her total federal income taxes owed annually. Borrowers may choose to adjust their W-4 withholding to account for the tax-credit benefit providing a higher net monthly income. Also, this MCC program can be used in conjunction with the $8,000 first-time homebuyer tax credit provided by the federal government until December 1, 2009. Any excess credit from the MCC may be carried forward for up to three subsequent tax years.
PROGRAM SIZE:
$25,000,000.00. The maximum amount of mortgages is $ 31,250,000.
PROGRAM PERIOD:
April 22, 2009 through December 31, 2011 as allocation remains available
ELIGIBLE MORTGAGORS:
First-time Homebuyers:
Cannot have owned a home in the past three years (except in "Targeted Areas" and for eligible refinancingsee below).
Refinancing:
Any adjustable rate mortgage single-family mortgage loan originated between January 1, 2002 and December 31, 2007 is eligible for refinancing with a MCC. There is no first-time homebuyer requirement, and a property must be the principal residence. Income limits below apply. The maximum appraised value of the home (at the time the MCC is issued) may not exceed the purchase price limits below. Ability to refinance using an MCC will be available until April 22, 2010.
MAXIMUM FAMILY INCOME:
Non-Targeted Targeted
Families of 2 or fewer $88,600 $91,200
Families of 3 or more 101,900 106,400
MAXIMUM HOME COST:
Non-Targeted Targeted
1-Family Residence $354,900 $433,800
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