Colorado Home Buyer Tax Credit | MCC Colorado

All first time home buyers, veterans, and home buyers in a targeted area are eligible to apply for the Colorado Home Buyer Tax Credit, which will give you a dollar-for-dollar reduction of your tax liability at the end of each year for the life of your home loan. Buyers see an average of over $100/month off their mortgage interest through the Colorado MCC tax credit. This will save you substantially on your Colorado VA Home Loan.

Here is an breakdown of the substantial savings through the tax credit:

  Without Tax Credit With Tax Credit
Loan Amount Borrowed $250,000 $250,000
Mortgage Note Rate 5% 5%
1st Year Interest Paid  $12,500 $12,500
Tax Credit Savings $0 $2500
Savings monthly $0 $208.33
Effective Rate 5%* 3.59%

*Call for current rates

This example is for illustration purposes.  The discount does not come to you as a monthly reduction of your mortgage interest, but a tax credit that you claim each year when you file your taxes.

I want the tax credit, how do I qualify?

Qualifying is easy, there’s just one simple form to fill out, then we will handle the rest of the paperwork.  Here are some of the basic qualifying factors:

  • Minimum credit score of 620
  • Primary residence only – you must occupy the property
  • Must be below the county income levels – call us for current limits!  303-670-0137
  • Claim the tax credit every year as long as you live in the home
  • Can roll forward and claim the tax credit for up to 3 years.  If you can't take the full credit one year, use the remainder the next year.
  • There are additional fees for this program – $250
  • Must take a state-approved home buyer education class and receive a certificate of completion.

MCC Rates:

Loan Amount MCC%(% of mortgage interests) Limit
$150,001 and up 20% No Limit
$100,001- $150,000 30% $2000
$100,000 or less 50% $2000

To get started, click on the FREE Home Purchase Analysis Tool Below:

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If you have a question that you cannot find an answer for on our website, don’t hesitate to use our FREE Ask an Expert feature.

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