Mortgage Credit Certificate Program Announced from the Iowa Finance Authority

Wow! A great benefit has been announced for Iowa home buyers who qualify as The Iowa Finance Authority (IFA) unveils the 2018 Mortgage Credit Certificate Program that can save Iowa home buyers up to $2,000 on their federal taxes, not just once but every year for the life of their loan! This is a tax credit (not a deduction) that can be deducted dollar for dollar from a buyer’s federal tax liability. The program awards a credit valued at 50% of the buyer’s future annual mortgage interest paid which is available annually as long as the buyer remains in the home and occupies it as their primary residence.

I called the Iowa Fiance Authority to get some more details and here's what I found out. The program started in 2013 and was offered in 2014,2015 and 2016 but was suspended last year. In 2016 $80 million dollars was allocated to the program and all the allotted funds were not used, there was $1 million left but in 2015 all the allocated funds were used by August. The funds allocated each year go only towards new credits, not awards to current recipients under the MCCP. 

How can a buyer find out if they’re eligible? Easy! Read below or online at:  http://iowafinanceauthority.gov/Public/Pages/PC93LN25

To qualify for this tax credit:

1. Home buyers must meet the federal income limits for Iowa, which vary by county and household size.

2. Purchase a home in Iowa to be occupied as a primary residence, and meet one of the following criteria:

    a.)Be a first-time home buyer, which is defined as a someone who has not had an ownership interest in a primary residence in the past three years; OR

    b.) Purchase a home in an IFA identified Targeted Area;

    c.) Be a military veteran with a discharge other than dishonorable who has not previously used a Mortgage Revenue Bond Program.

3.) Buyer must be originating a new mortgage.

Income limits, Targeted Area details and an eligibility quick check are available at IowaFinanceAuthority.gov.

Some more information and details about the program

1. Homeowner must have a tax liability to use the credit.

2. For homeowners without a tax liability in a given year, the credit can be carried forward for up to three years.

3. 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.

 4. Funding for the program is limited. The MCCs will be provided on a first-come, first-served basis. The MCC may be combined with available IFA grants for down payment and closing costs.

5. Buyer must use an IFA participating lender.

This a great benefit for buyers but is available only for a limited time. Call or text Matt at 515-988-3726 for more details at 515-988-3726 today!

Closings of luxury homes priced over $700,000 on the Des Moines MLS came off life support in February to log 6 closed for the month, 7 pending and 64 active. Compared to closed sales of 1 in January closings were brisk. With 64 active at the end of the month there was still a 10.7 months supply which would indicate a buyers market and healthily above the trend of 8.6 months of inventory in 2017.

West Des Moines led the metro with the largest number of listings at 12 active, and 2 pending, followed by Urbandale with 9 active, 1 pending and 1 sold, which was close to Ankeny's levels of 8 active, 1 pending and 2 sold.

The highest priced home sold was 2866 NW 82nd Ave in Ankeny at $1,250,000. The highest pending was 3555 Oakmont Court in West Des Moines at the lasted listed price of $1,795,000. The $700-$750,000 category was the most active with 3 sold and 2 pending. Two homes in the southwest of Des Moines made the report 3800 SW 56th St sold at $935,000 and 2909 Cayuga Point which sold at $705,000. 

The dollar value of invetory rose from $66,211,018 in Jaunary to $75,523,602 iN February reflecting a 14% gain. 

It looks like 11 more new listings have come on in March so there will be even more choices for buyers above $700,0000 and bring inventory levels to 1 year of supply. If you need your home to stand out in this market or if you're planning to buy a luxury home this year I can help. Please call or text me at 515-988-3726 for your consultation today.

Des Moines area February 2018 home sales showed more cooling of the market even as temps warmed. Average and median sales prices rose across the board however as fewer but more expensive homes closed during the month. Overall unit sales fell -2.7% from 2017 from 750 sold to 730. Rising rates almost certainly played a part. Rates have risen every week this year, up eight weeks running until the end of February. New construction sales continued to do well comprising 40% of all units sold in Altoona and Waukee, 33% in Grimes and 24% in Ankeny.

Sales rose the most in the following three areas:

Altoona: 61.8%

Ankeny: 20.7%

Urbandale: 1.4%

All other areas saw declines lead by:

Grimes: -42.9%

Waukee: -38.5%

Clive: -31.2%

Areas seeing the largest price gains were:

Des Moines: 25.1%

Ankeny: 23.1%

Indianola: 16.7%

The smallest price gains or drops were in:

Clive: -12.5%

Urbandale: -5.3%

West Des Moines: 1.2%

Inventory levels remained flat with total listings beginning the month at 3114 and ending at 3112, trending below normal unit levels overall. Days on market increased slightly to 109 from 108 the year prior.  Sales will almost certainly continued to be soft with rates rising and the stock market retreating from record highs amid increased volatility and inflation fears.

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