Take Credit Mortgage Credit Certificate Program
2014 Take Credit Mortgage Credit Certificate Program
The Iowa Finance Authority (IFA) is pleased to announce the 2014 Take Credit Mortgage Credit Certificate (MCC) Program. Under the Take Credit program, eligible borrowers will receive a MCC from IFA, which can be used to reduce their household's federal tax liability every year for the life of the mortgage.
The IFA Board of Directors has approved an allocation of approximately $75 million of private activity bond volume cap to be used for issuing MCCs in calendar year 2014. This program is estimated to assist 585 new home buyers.
Funds will be available for reservation by Take Credit Participating Lenders starting on February 3, 2014. At that time, funds may be reserved on behalf of qualified borrowers making new purchases. Only borrowers with a written Commitment Notice from IFA prior to closing will be eligible to receive a MCC. The 2014 Take Credit program guide is available here.
To receive the MCC, borrowers must receive mortgage financing that has closed in the name of a lender who is an IFA Take Credit Participating Lender. To become a Take Credit Participating Lender, lenders must request a 2014 Take Credit lender sign-up packet.
About Take Credit
- Take Credit allows a participating home buyer to claim 30% of their mortgage interest, up to a maximum of $2,000, as a federal income tax credit each year for the life of the mortgage, up to a maximum of 30 years.
- Unused credit may be carried forward for up to three years.
- Eligible financing is limited to 30-year, fixed-rate, fully amortizing mortgage loans.
- A limited amount of funds are available and will be provided by the Iowa Finance Authority on a first-come, first-serve basis.
- A MCC is transferrable under certain conditions upon sale or refinance, if reissued by IFA in accordance with the Program requirements. Reissuances of a MCC under these circumstances must be requested by the lender within 45 days of the refinance or sale.
- Applicants must meet applicable federal income limits for Iowa, which vary by county. Quick Check!
- Applicants must meet ONE of the following:
1. Be a first-time home buyer (have not owned or have had ownership interest in a primary residence in the last three years); OR
2. Purchase a home in a Targeted Area; OR (Targeted Areas listed here.)
3. Be a military veteran who has not previously used a Mortgage Revenue Bond Program with a discharge of other than dishonorable.
- The purchase price of the home may not exceed $305,000, if located in a Targeted Area, or $250,000, if located in a Non-Targeted Area.
- The property must be a newly financed purchase closing after the effective date of the 2014 Program.
- The property must be purchased as a primary residence and intended for occupancy by the applicant immediately following closing.
- The property must be located in Iowa.
Borrower Application Process
- Visit an Iowa Finance Authority Take Credit Participating Lender and apply for the Take Credit! Program when applying for your mortgage.
- Pay the $300 borrower Take Credit application fee. (This fee is waived if borrower uses Homes for Iowans first mortgage.)
- Upon final approval, borrower will receive the MCC in the mail after closing.
- Submit a copy of the MCC with your tax documents each year to claim the tax credit.
If you are currently enrolled in a MCC Program and would like to be considered for reissuance, please contact a participating lender.