Important Tax Credit News for homebuyers in Denver
We are excited to announce big changes in the City and County of Denver MCC program! The MCC tax credit rate has been increased to 25% from the original 20% rate. This increase allows borrowers to receive a higher annual federal income tax credit…25% of the annual interest they pay on their mortgage loan. Since the tax credit has increased, there is a $2,000 maximum credit limit due to federal tax law. However, the remaining balance can be carried over for three subsequent tax years. We hope this additional credit will help your first-time homebuyer clients by potentially providing them with even more money in their pockets each month.
Secondly, the income and purchase price limits have changed! There is over $13 million of funds still available in the MCC program which ends on December 31, 2011.
Remember, it is not a tax deduction, but a tax credit which can provide you more funds monthly should you adjust your W-4. In this market environment, who couldn’t use that? Also, did you know that the MCC can be used with other assistance programs? The Denver Office of Economic Development has partnered with several non-profit organizations to help provide Denver area residents with down payment and homeownership counseling assistance toward the purchase of an affordably priced home. Please visit http://takerootdenver.org/buying/home-buyer-assistance.html for referrals to agencies that can help provide down payment assistance in addition to your Mortgage Credit Certificate.
Call for more information ~
Ray- 303-779-0591 x101