Take Credit Mortgage Credit Certificate Program
The Take Credit program allows eligible borrowers to receive a Mortgage Credit Certificate (MCC) from IFA, which awards a tax credit value of 50 percent of annual mortgage interest paid (up to a maximum of $2,000 per year) to be taken as a credit against federal income tax liability for the life of the loan, up to 30 years.
- Homeowner must have a tax liability to use the credit.
- For homeowners without a tax liability in a given year, the credit can be carried forward for up to three years.
- Any remaining amount of mortgage interest paid that is not taken as a tax credit is allowed to be taken as a deduction from taxable income on federal income tax returns, if the home buyer itemizes.
- The MCC may be reissued upon refinance and may be transferable upon sale under certain conditions, if reissued by IFA in accordance with program requirements.
- Funding for the program is limited.
Home Buyer Eligibility
- Applicants must meet applicable federal income limits for Iowa, which vary by household size and county.
- Be purchasing a home in Iowa to be immediately occupied as a primary residence.
- Applicants must meet ONE of the following:
1. Be a first-time home buyer, defined as a person who has not owned or had ownership interest in a primary residence in the last three years; OR
2. Purchase a home in a Targeted Area; OR
3. Be a military veteran with a discharge other than dishonorable who has not previously used a Mortgage Revenue Bond Program.
- The purchase price of the home may not exceed $258,000, if located in a Non-Targeted Area, or $316,000, if located in a Targeted Area.
- Only new purchases approved by IFA prior to closing.
- 30-year fixed rate, fully amortizing mortgage loan.
- Use of Iowa Title Guaranty is required.
- No cosigners.
- Only home buyers with a written Commitment Notice from IFA prior to closing will be eligible to receive an MCC.
Application Process - see the Next Steps sidebar.
If you are currently enrolled in a MCC Program and would like to be considered for reissuance, please contact a Take Credit Participating Lender.