Denver has launched a Mortgage Credit Certification program with $30 million in bond financing, with a goal of sparking additional private investment in making homeownership in the city more easily attainable.
The program enables qualifying borrowers to receive an annual federal income tax credit equal to 30 percent of the annual interest paid on their mortgage loan, up to $2,000 annually.
“For many families, home ownership is a primary method of asset building and saving for the future,” said Denver Mayor Michael B. Hancock. “We’re providing a financial boost to individuals and families while increasing home ownership opportunities and the overall strength and vitality of Denver neighborhoods.”
A Mortgage Credit Certificate is a tool to reduce the amount of federal income tax a borrower must pay by providing an annual federal income tax credit. In effect, this provides additional take-home income for borrowers to use in meeting expenses. Lenders can use the estimated amount of the credit on a monthly basis as additional income to help a potential borrower qualify for a loan.
The program is available to qualifying borrowers purchasing a residence in the City and County of Denver. Annual family income cannot exceed $79,300 for one or two persons and $91,195 for three or more. The maximum home cost is $370,252. Higher income and purchase price limits are available in targeted areas. Participants cannot have owned a home in the past three years, except in targeted areas and for qualifying veterans.
The previous Mortgage Credit Certificate program, offered from 2009 to 2011, benefitted 126 Denver homebuyers.
For Leo Chavez, the program helped him purchase his first home, a Victorian single-family residence, in Denver’s West Colfax neighborhood.
“The MCC program made me consider other areas to buy a house that I didn’t consider before,” said Chavez. “The financial benefits are great, and I have been able to apply the savings to my home improvements. It is a program that loan and real estate professionals need to be knowledgeable about, especially to better serve their clients.”
Potential homebuyers interested in Denver’s Mortgage Credit Certificate program may contact any of the following approved lenders:
- Air Academy Federal Credit Union – 719-592-1045
- American Liberty Mortgage – 303-458-3778
- Bank of America – 720-529-6332; 970-569-3561; 970-818-3031
- Citywide Home Loans – 303-996-7000; 866-437-0200
- Cornerstone Mortgage – 303-887-9155; 303-957-2484; 303-947-3561
- Summit Mortgage Co. – 303-779-0591; 303-991-2749; 720-200-9480
- The Mortgage Network – 303-394-2121
- Universal Lending Corp. – 720-524-2679
- Uptown Mortgage – 303-839-5262
- WR Starkey Mortgage – 720-279-3132; 720-489-0712
- Wells Fargo Home Mortgage – 303-980-7686; 720-344-7200
Additional lenders can sign up to participate in the program by contacting Stacy Houston at Stacy.Houston@morgankeegan.com.
Denver is funding this program with 30 million of Private Activity Bond allocation. The program is available through Dec. 31, 2014, or until funds remain available.
For more information about the Mortgage Credit Certificate program, visit this link.