What is the CHFA Mortgage Credit Certificate (MCC)?
The Colorado Housing and Finance Authority (CHFA) offers the Mortgage Credit Certificate (MCC) as one of its loan programs.
The MCC allows homeowners to claim 20% of your annual mortgage interest as a tax credit on your federal taxes. This in turn reduces the amount of federal taxes that the homeowner owes for the year. Unlike some other loan programs, the MCC allows you to claim this 20% each year that you own the home, not just the first year of homeownership.
The homeowner can then claim the remaining interest as a home mortgage interest deduction on your federal taxes.
Essentially, the MCC reduces the amount of taxes* you owe, which increases your return, or at the very least decreases the amount you may owe. For those who do receive a return on their taxes, they can save the money or put it back into their home, improving the value.
In order to qualify for the CHFA MCC program you must meet the following criteria:
First Time Homebuyer** (Per CHFA & HUD's definitions) OR
Non-First Time Homebuyer in Targeted Areas only OR
An Eligible Veteran***
Mid Credit Score: 620 or higher
Complete CHFA's Homebuyer education class prior to closing
If you are eligible for the MCC, it is definitely a great program to consider. Popish Mortgage is a CHFA MCC approved lender and can help you find the best home for your budget.
To get the process started, or even just to ask us questions about the program, send your contact info here and we will be in touch as soon as possible.
*Individual tax benefits may vary depending on your situation. Consult a tax adviser for specific tax questions.
** A first time homebuyer is defined by CHFA as one who has not had an ownership interest in a primary residence for the three years prior to the mortgage loan closing.
*** Eligible veteran: A person who served in the active military, naval, or air service of the United States, and who was discharged or released therefrom under conditions other than dishonorable, as defined in 38 USC Section 101.