A new program announced Tuesday by the Iowa Finance Authority (IFA) is designed to provide tens of thousands of dollars in federal tax relief to hundreds of first time home buyers in the state. IFA Executive Director David Jamison says a program of this type hasn’t been offered in Iowa since the mid-1990s.
The Take Credit! Mortgage Credit Certificate program allows eligible home buyers to qualify for up to $2,000 a year in federal income tax credits through the life of the mortgage. “Potentially, that’s a $60,000 difference to somebody,” Jamison says.
Eligibility for participation in the program varies by county. “But, we can roughly say if the household income for two is under $70,000 and the home purchase price is (under) $250,000, you’re in the ballpark,” Jamison says. The IFA has allocated $50 million toward the program.
“We expect that will help approximately 1,000 Iowans and it will run until the $50 million is allocated — or about a year is what we expect,” Jamison said. About 100 lenders in Iowa are participating in the program.