Good Things Happening in Northern Colorado

Economic indicators are doing well in Northern Colorado. Fort Collins sales tax revenue incresed 27.8% year over year in April, while at the same time, building permits pulled in April totaled 28 in 2010 as opposed to just 12 in 2009. Unemployment also took a dip regionwide. Greeley unemployment dropped from 9.9% dowmn to 9% while Fort Collins/Loveland dropped from 7.1% down to 6.4%.

There is still a great tax credit out there!

Even though the government tax credit for purchasing a home has now expired, it is not too late to take advantage of another great tax credit program. It is called the Mortgage Credit Certification Program (MCC). This program allows buyers to claim up to 20% of the paid mortgage interest every year they live in the home and for the life of the loan! Here are some details:

- For the life of the loan, MCC holders may claim a dollar-for-dollar reduction of income tax liability equal to 20 percent of the paid mortgage interest on the first mortgage.

- The remaining 80 percent of the paid mortgage interest continues to qualify as an itemized tax deduction.

- MCC tax credit can be used with FHA, VA, USDA, Conventional, Home Path, CHFA programs.

Here is an example:
- $180,000 loan amount at 5% APR
- $9,000 of interest can be written off each year, this is a deduction through your taxes but not a direct credit.
- 20% of $9,000 is $1,800 that you can claim as a credit, and get that money back into your pocket!
- $1,800 per year for the LIFE OF THE LOAN! That is THOUSANDS of dollars!

Not every lender is capable of writing this kind of loan, but I work with one who can. Call me if you have any questions or want to try and take advantage of this program.