The Iowa Finance Authority is now offering some first-time Iowa home buyers a tax credit of up to $2000 a year, for the life of their 30-year mortgage.
Twenty years ago congress passed a law allowing states to set up this kind of a program and Iowa is doing it for the first time in 2014. Iowa Finance Authority director Dave Jamison says his agency will issue a certificate for that tax credit on mortgages that are handled by a lender participating in the program.
“One important note is that the Mortgage Credit Certificate funding will be available on a first-come, first-served basis until the funds are expended,” Jamison says.
Home sales that closed after February 3 of this year are eligible. There are income limits as to which first-time home buyers are eligible, as well as limits on the price of homes they buy, but Jamison estimates five-hundred-85 (585_ Iowa home buyers will be eligible in 2014. Iowa Association of Realtors CEO Dave Bert says this “Take Credit” program should encourage more Iowans to buy a home.
“Not only is home ownership good for individuals, it promotes a prospering economy,” Bert says. “Every home purchase pumps up to $50,000 into the economy over time and homeownership helps support and create jobs.”
The Iowa Finance Authority was created in the mid-70s to administer programs that help low- and moderate-income Iowans buy their first home.