New Tax Credit For Iowa First-Time Home Buyers

Iowa Finance Authority announced a great new program this week to put money back in the hands of homebuyers. The Take Credit! Mortgage Credit Certificate provides for an up to $2000 per year tax credit for the life of the mortgage. So essentially you would receive $2000 towards your tax liability. If you liability is zero, you should receive a refund. The money that you receive back effectively reduces your mortgage payment by the amount you receive which in this case ($2000/12) is $166 per month.

As always there are restrictions and limitations. The program is targeted towards first-time homebuyers, veterans and those living intargeted areas. From the IFA website:

  • Applicants must meet Iowa Finance Authority¬†income limits, which vary by county.
  • 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 home must be located in Iowa.
  • The home buyer must meet one of the following: be a first-time home buyer, purchase a home in a Targeted Area, or be a military veteran who has not previously used a mortgage revenue bond program.

In Polk county, the income limits are $75,000 income for a 1-2 person household and $86,825 for 3+ people living in a household.

This is a great program that makes housing more affordable for many people.

Please contact me if I can provide you with more information or connect you with an approved lender.