Iowa Finance Authority

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.

Quick Facts

  • 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.
    Quick Check!
  • 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.

Qualified Financing

  • 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.

Current Homeowners

If you are currently enrolled in a MCC Program and would like to be considered for reissuance, please contact a
Take Credit Participating Lender.


Notice Learn More

Notice Notices

Sept. 16: Take Credit Tax Mortgage Credit Certificate Program is now closed.

Now Available: New conventional mortgage product with 3% down and no mortgage insurance! Learn more about HFA Preferred Risk Sharing.

As of 12:53 AM, December 2, 2015
Mortgage Rates starting at: 3.625 %
Notice Next Steps

1. Visit an Iowa Finance Authority Take Credit Participating Lender.

2. Lender collects all eligibility verifications, makes a reservation in IFA's online lender portal and submits the required eligibility documents to IFA for review.

3. Once IFA has determined preliminary eligibility and prior to closing, the lender must obtain a Notice of Commitment from IFA. IMPORTANT: No MCC will be issued for a loan which closed prior to receiving a written Notice of Commitment from IFA.

4. Upon loan closing, the lender uploads final eligibility documents to IFA, who confirms eligibility and sends the MCC to the home buyer after closing.

 5. Homeowner uses the MCC at tax time to claim the credit.

 6. A borrower application fee of $300 must be paid at the time of request if the applicant is not using an IFA mortgage. No application fee is required with an IFA mortgage.

Notice Contact