CHFA 20% Tax Credit

Uncle Sam is doing everything he can to help first-time homebuyers get into a house. Sponsored through the Colorado Housing Finance Authority (CHFA) is a new mortgage certificate program that will allow a buyer to deduct from their federal income tax liability 20% of the annual mortgage interest paid on their home. Everybody knows that the payments in the first years of a mortgage go almost entirely to interest. Let's say that you had a $200,000 loan at 5 1/2% annual interest rate, then you would have paid approximately $11,000 in interest in year one. Under this mortgage certificate program, 20% of that amount... $2,200... could be deducted dollar for dollar from your federal tax liability. The balance of the $11,000... $8,800... can still be taken in the taxpayers itemized deductions. This is a significant savings and does not cover just the first year, but is supposed to apply to the life of the loan. There are some restrictions of course so please give us a call and we can discuss those with you. One restriction is an income limit and another is the sales price of a home. Also, you have to be a first-time home buyer.

This program does not expire at the end of November like the $8,000 tax credit and it can be taken in addition to the $8,000 tax credit. We would love to help you find your first home so please give us a call and I'll hook you up with the number one buying agent team in the County for three years running.