In The News

Stimulus tax credit for first-time Colorado homebuyers announced

Denver Business Journal

Tuesday, April 14, 2009

The Colorado Housing and Finance Authority and U.S. Rep. Ed Perlmutter Tuesday announced "CHFA JumpStart," a program under the federal stimulus package to offer a tax credit to first-time homebuyers.

The credit of up to $8,000 -- authorized under the American Recovery and Reinvestment Act -- would go to qualifying first-time homebuyers who purchase and close on a home between Jan. 1 and Dec. 1, 2009.

"Through the CHFA JumpStart program, we are bringing the benefits of the economic stimulus plan to Colorado," Perlmutter, D-Golden, said in a statement Tuesday. "First-time homebuyers will be able to leverage the future benefit of the federal tax credit by working with CHFA to access the dollars needed to buy a home today."

According to details released Tuesday by Perlmutter's office, CHFA JumpStart offers first-time homebuyers a 30-year fixed-interest first mortgage as well as a zero-interest second mortgage for $6,000 or 3.5 percent of the home, whichever is less, to be used for down payment and closing costs.

There are no payments due on the second mortgage through June 30, 2010.

Borrowers could use their tax credit under the program to pay off the second mortgage before the June 30, 2010, deadline.

Those eligible for the program can claim 10 percent of the price of their home, up to the $8,000 maximum, against their 2008 federal tax returns due this year, or their 2009 federal tax returns due next year.

The credit begins to phase out at a modified adjusted gross income of more than $75,000, or $150,000 for joint filers, Perlmutter's office said.

The tax credit can be used with CHFA’s home finance programs.

Click here for more information.

Also visit the Internal Revenue Service website (http://www.irs.gov) for information on the homebuyers' tax credit