The Tax Credit Is Back for the City of Denver

Mortgage Credit Certificate Program

The City and County of Denver 2009 Mortgage Credit Certificate (MCC) program allows qualifying borrowers to receive an annual federal income tax credit equal to 20% of the annual interest they pay on their mortgage loan. A tax credit enables a taxpayer to subtract the amount of credit from his or her total federal income taxes owed annually. Borrowers may choose to adjust their W-4 withholding to account for the tax-credit benefit providing a higher net monthly income. Also, this MCC program can be used in conjunction with the $8,000 first-time homebuyer tax credit provided by the federal government until December 1, 2009. Any excess credit from the MCC may be carried forward for up to three subsequent tax years.

PROGRAM SIZE:
$25,000,000.00. The maximum amount of mortgages is $ 31,250,000.

PROGRAM PERIOD:
April 22, 2009 through December 31, 2011 as allocation remains available

ELIGIBLE MORTGAGORS:
First-time Homebuyers:
Cannot have owned a home in the past three years (except in “Targeted Areas” and for eligible refinancing…see below).
Refinancing:
Any adjustable rate mortgage single-family mortgage loan originated between January 1, 2002 and December 31, 2007 is eligible for refinancing with a MCC. There is no first-time homebuyer requirement, and a property must be the principal residence. Income limits below apply. The maximum appraised value of the home (at the time the MCC is issued) may not exceed the purchase price limits below. Ability to refinance using an MCC will be available until April 22, 2010.

MAXIMUM FAMILY INCOME:

Non-Targeted              Targeted
Families of 2 or fewer                    $88,600                       $91,200
Families of 3 or more                      101,900                       106,400

MAXIMUM HOME COST:

Non-Targeted              Targeted
1-Family Residence                       $354,900                     $433,800

ELIGIBLE LOAN AREA:

Mortgage loans under the program may be made to qualifying borrowers in the City and Denver.

ELIGIBLE LOANS:

Terms and interest rate of the mortgage loan set by the lender, though must be fixed-rate and not exceed 40 years.

TARGETED AREAS:

Targeted Areas are certain census tracts designated by HUD as underserved in the mortgage loan origination. To look up a specific address, please enter the property information on the FFEIC Geocode website and compare the census tract code provided to the list below.

Census Tract Codes for the MCC program: 000600, 000702, 000800, 001101, 001600, 001900, 002403, 002701, 003602, 004101, 004404, 004502, 005103, and 008313.

HOMEBUYER EDUCATION:

Homebuyer Education is required for all borrowers and a certificate must be obtained through a HUD approved agency. Please click here to find information on an approved agency.

COSTS:
$75 non-refundable Borrower Application Fee plus 0.15% of the mortgage amount for the MCC issuance Fee.

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