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:

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

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!