The Colorado Housing Finance Agency (CHFA) has launched a new program to help the state's first-time home buyers save up to $2,000 annually on their federal income taxes.
The program, called CHFA SmartStep, combines THE CHFA's most affordable 30-year fixed rate mortgage with a Mortgage Credit Certificate and optional down payment assistance. According to the CHFA, the Mortgage Credit Certificate works by allowing buyers to count a percentage of the mortgage interest they pay annually as a $1 for $1 tax credit against their federal income tax.
‘As rents rise and housing prices begin to stabilize, CHFA's new SmartStep program will help first-time buyers achieve homeownership through responsible and stable financing,’ says Cris White, executive director and CEO of the CHFA. ‘CHFA's interest rates are the lowest they've been in our history. This, combined with the savings available through the Mortgage Credit Certificate and relatively affordable home prices, makeS it an opportune time to buy.’
To be eligible for the CHFA SmartStep program, borrowers must be first time home buyers, have a minimum 620 FICO score, and meet income and purchase price limits. All CHFA borrowers must contribute at least $1,000 toward the purchase of their home, as well as complete a free home buyer education class. Non-first-time home buyers who are eligible veterans or purchasing a home in an Internal Revenue Service-identified target area may also participate in SmartStep.