Home About News and Resources Contact Us Careers at C H F A Text Only colorado housing and finance authority -- finding the places were people live and work
CHFA Mortgage Credit Certificate

Statewide Mortgage Credit Certificate Program Launches
July 7, 2009
Jerilynn Martinez


(DENVER) First time homebuyers looking to take advantage of today's competitive home prices and the $8,000 federal tax credit may have another reason to buy a home. CHFA (Colorado Housing and Finance Authority) has launched a statewide Mortgage Credit Certificate program, which gives qualifying first time homebuyers even greater tax benefits from homeownership than traditionally available.

"CHFA's Mortgage Credit Certificates will supercharge a first time homebuyer's federal tax savings by allowing the certificate holder to claim 20 percent of the mortgage interest paid annually, dollar-for-dollar, against their federal tax obligation," said Karen Harkin, CHFA's director of home finance.

Harkin continued, "The remaining 80 percent of the mortgage interest paid can continue to be used as an itemized deduction, which is typically how all mortgage interest is treated." Because they aren't paying as much towards taxes, first time homebuyers have more money left in their paychecks to put towards their mortgage payment."

To be eligible for a CHFA Mortgage Credit Certificate you must be a first time homebuyer in Colorado and meet the income and purchase price guidelines for the census tract and county where you live. CHFA has a tool on their website, www.chfainfo.com, to help homeowners identify the income and purchase price limits for their area. For example, in targeted Denver Metro Areas, homebuyers with three or more people in their household can earn up to $106,400 annually with a maximum purchase price of $417,000.

Homeowners who refinance out of an adjustable rate mortgage originated after Dec. 31, 2001 and before Jan. 1, 2008, and obtain a long-term fixed rate mortgage are also eligible to apply for a CHFA Mortgage Credit Certificate.

Harkin commented on the program saying, "While select counties have chosen to make Mortgage Credit Certificates available, this is the first time the program has been offered statewide. The combination of low prices, favorable interest rates, the $8,000 federal tax credit, and a Mortgage Credit Certificate make a compelling case for homeownership today."

To apply for a CHFA Mortgage Credit Certificate, contact one of CHFA's participating lenders, or inquire about Mortgage Credit Certificates with your local lending institution. To view a complete list of lenders currently authorized to issue CHFA Mortgage Credit Certificates visit www.chfainfo.com. Lenders interested in applying to participate in CHFA's Mortgage Credit Certificate program should contact CHFA's Home Finance team at 1.800.877.2432.

About Colorado Housing and Finance Authority (CHFA)

# # #

Mortgage Credit Certificate Fact Sheet  

© 2014 Colorado Housing and Finance Authority - 1.800.877.chfa (2432) privacy & security nondiscrimination contact 
Western Slope Office - 1.800.877.8450