- Up to $2,000 of the total mortgage interest paid in income tax credits each year.
- Tax credit directly reduces income tax due.
- Unused tax credit can be carried forward for up to three years.
- Can be used with Idaho Housing home loan products.
- First‐time homebuyer requirements apply in non targeted areas.
- Idaho Housing’s First Loan program household income limits apply.
- Owner occupancy is required to receive tax credit.
- $300 fee from borrower.
Example of tax credit benefits to borrowers:
(Based on $150,000, 30‐year mortgage at 4% interest rate)
|Year||Mortgage Interest Paid||35% Tax Credit|
|The tax credit is for the life of the loan; this example shows that in just the first five years a borrower could receive $10,000.00 in tax credits.|