I was in a meeting last week and training today to be part of the lending force who will be able to offer the mortgage certificate to folks buying in the city and county of Denver.
The way it works is you will receive a credit based on a percentage of the mortgage interest you will pay in a given year. We all know when we buy a house that the mortgage interest is tax deductible. However, this credit allows you to adjust your W4 and increase your take home pay.
For Example, if you buy a $200,000 home at 5% interest rate you will pay $10,000 in mortgage interest over a year (thus tax deductible for your family). With the mortgage credit you will have $166 additional dollars per month in your paycheck while you own the home. This also is factored into your ability when you qualify for the house to offset your debt ratios. That is right it helps you when you qualify to buy the house as well as in your paycheck. You can use an FHA, VA or even conventional mortgage when you do this as well.
For more information give me a call to learn more or shoot me an email.
Ray, Branch Manager, Summit Mortgage Denver
303-779-0591 ext 101