More First Time Home Buyer Credits

By now, everyone has heard about the $8000 tax credit for first-time homebuyers. However, there is an additional first time home buyer incentive available. Sponsored by the Colorado Housing Finance Authority, a first-time home buyer may be eligible to take a tax credit of 20% of each year's mortgage interest paid against their federal income tax liability. Let's say, for purposes of illustration, that a homeowner paid $12,000 in interest on their home mortgage the first year. 20% of that number ($2400) would be deductible from the taxpayer's federal income tax liability. The remaining 80% of the mortgage interest paid ($9,600) can still be used as an itemized deduction on their federal income tax return. This program is supposed to last the life of the loan.

In order to qualify for this program, you must obtain a CHFA Statewide Mortgage Credit Certificate through an approved lender. In order to qualify purchase price of the home cannot be more than $354,900 anyone a two-person family cannot make over $71,000 annual household income or $81,600 annual household income for homes with three or more persons.

Only a select number of lenders have signed on to this program so please give me a call and I would be happy to help you connect to the appropriate party. Buying real estate in Durango is very rewarding but it certainly can be a daunting task for many a first-time home buyer. Team Lorenz is certainly here to help you locate great properties and get you connected with the appropriate lenders.