Home buyers may be eligible for a tax credit of up to $2,000 through a new program announced Tuesday by the Iowa Finance Authority.
The Take Credit! Mortgage Credit Certificate program, which started Jan. 1, 2013, allows first-time home buyers and other qualified participants to reduce their federal tax liability by up to $2,000 each year, through the life of the mortgage. A program of this type has not been available in Iowa since the mid-1990s, said Ashley Jared, IFA communications director.
To be eligible, home buyers must meet income guidelines. One to two person households can make no more than $71,000 in Linn County or $80,300 in Johnson County.
For households of three or more, the income limits are $81,650 and $92,345 in each county, respectively.
Among other restrictions, the purchase price of the home cannot exceed $250,000.About 100 lenders in Iowa are participating in the program. To learn more about the program and to see a list of participating lenders, visit iowafinanceauthority.gov.