CHFA recently announced that their Mortgage Credit Certificate (MCC) funds have been exhausted. This is good and bad news, the good being that more buyers are taking advantage of the opportunity of the MCC, bad news is that unless you are buying in Denver this advantage is no longer available to you this year.
Good news is as I just stated, the MCC is still available for the City and County of Denver. If you’re buying in Denver make sure to research the MCC and ask you lender if you can receive. The tax credit allows you to claim 30% of your mortgage interest as a tax credit, not deduction. This is a dollar for dollar credit against your tax liabilities (max $2000/yr)! Why wouldn’t you want to owe the IRS less? Plus you still get to deduct your remaining mortgage interest (70%) on your tax returns. Bonus!
Remember the MCC is only available at time of purchase, you are not able to add on the mortgage credit certificate after you close on your home! Please note that this does not include a reissue of an MCC. If you already have an MCC and you are refinancing your are still able to get your MCC reissued through CHFA.
Put more money in your pocket, make sure to talk with your lender and if they are not approved or don’t know about the MCC, give us a call we are always happy to help!