If there’s anything The Eusea Team does well, it’s finding the best mortgage loan options for our clients to bring them home. And boy do we have a great option for first-time homebuyers and veterans! A new mortgage loan program, the Mortgage Credit Certificate (MCC), we have access to will dramatically increase purchasing power and help our clients save some big bucks over the years.
The Colorado Housing and Finance Authority (CHFA) has renewed this housing tax credit, the Mortgage Credit Certificate, for qualified buyers that allows you to take 20% of the interest you pay on your mortgage and get it back as dollar for dollar tax return! This program is limited to Colorado qualified veterans and first-time homebuyers who have not owned in three years.
This new tax credit allows you to take 20% of the interest you pay every year and get it back as a direct credit for the life of the loan. The normal benefit of owning a home is you get to deduct your interest and you still can in this case, you will deduct 80% of your interest to lower your adjusted gross income but you can take the other 20% and get a dollar for dollar credit.
While this sounds complicated, this example breaks it down to illustrate how it will work on a 30-year fixed rate loan. Normally, the estimated interest you will pay in one full year is $10,000 on a $225,000 loan. With this new credit rate of 20%, you would be eligible for a tax credit on your taxes. In this example, 20% of the $10,000 of taxes is $2,000 that you would get back dollar for dollar. If you divide that over the entire year, that’s $166.67 per month savings on your payment every year that you own the home. This adds up quickly to be a HUGE savings for you and your family and these monthly savings will give you about $30,000 more in qualifying purchase power! Click here to see a sample 1040 Tax Form to see how this tax credit will be applied to your taxes.
Very few mortgage loan lenders in the state of Colorado are able to offer this mortgage loan option for veterans and first-time homebuyers; The Eusea Team at AmeriFirst Financial has been offering these loans for over 10 years and we happen to be the top in the state for CHFA loans. Contact The Eusea Team to see what this tax credit can do for your home search and what your taxes will look like as a result. We’d be happy to walk you through the process step by step to help you understand how this can help you qualify and afford the home of your dreams.
Realtors, The Eusea Team at AmeriFirst Financial would love to teach you how help your clients leverage their money with this program. Please contact us today if you’d like to learn more.
But don’t delay, CHFA has limited funding for this Mortgage Credit Certificate program and when the money runs out, they will not accept any more loan applications. Get qualified today with The Eusea Team!