The Mortgage Credit Certificate, aka MCC, is a certificate issued by certain state and local governments that allows a taxpayer to claim a tax credit for part of the mortgage interest paid during a given year.
This program is offered in Colorado, and our company, The Mortgage Network is proud to offer many types of home loans and to have this affiliation to offer this money saving program to homebuyers throughout Colorado.
Here are the minimum requirements to qualify for this money saving program.
Regarding #3, in targeted areas of Colorado where this program is underserved, here is the breakdown.
For Non -Targeted areas
You will also have to take a HUD Approved Home Class, which you can look into here, and I would advise doing so before you go under contract to give yourself plenty of time to get all the paperwork properly processed. If in Denver County, you do not have to pay anything upfront for the program. In all counties outside of Denver, you will need to pay $250 upfront to CHFA.
You are able to receive an annual Federal Income Tax Credit Equal to 30% of the Annual Interest You Pay on your Mortgage Loan.
This is a credit, and this will allow you to subtract the amout of credit from your annual federal income taxes.
=TOTAL CREDIT - $5004
The IRS limit is $2000 a year, so on the above example you would report a $2000 credit on your tax return. You can continue to receive a tax credit for as long as you live IN the home and keep the mortgage.