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