The I-Loan Certificate (Mortgage Credit Certificate) from the Illinois Housing Development Authority (IHDA):

1. Allows low/moderate income first-time home buyers (or no home in past three years) to claim 25 percent of all mortgage interest paid as a tax credit up to maximum credit of $2,000.
2. The remaining 75 percent of mortgage interest paid continues to qualify as an itemized tax deduction.
3. Tax credit is good for the life of the mortgage if the original borrower stays in the home.
4. Available in participating communities.
5. Buyer must apply for MCC through the lender prior to closing.
6. Can be used with conventional/VA/FHA/USDA-RS loans. An MCC cannot be used with an IDHA loan.
7. Buyer must file a revised W-4 withholding to receive an immediate benefit, or wait until filing his/her federal income tax return to receive the credit as a tax refund.
8. May incur the IHDA recapture penalty when selling the property.

For more information, visit the IHDA Web site or contact IHDA at 312-836-5230.