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New program offers $2,000 tax credit to Iowa home buyers

First time similar program has been available since the mid-1990s

Home buyers may be eligible for a tax credit of up to $2,000 through the new Take Credit! Mortgage Credit Certificate program. (George C. Ford/The Gazette)
Home buyers may be eligible for a tax credit of up to $2,000 through the new Take Credit! Mortgage Credit Certificate program. (George C. Ford/The Gazette)

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.

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