PROGRAM DESCRIPTION:

• The MCC reduces the amount of Federal income tax you pay, thus giving you more available income to qualify for a mortgage loan and to make your monthly mortgage payments.

ELIGIBILITY:

• Be a first time homebuyer. (You cannot have had an ownership in a principal residence at anytime in the last three years).
• Occupy the home.
• Not exceed the Income and Purchase Price Limitations.

HOW DOES MCC WORK:

You will receive tax credit for (15%) fifteen percent of the annual interest you pay on the mortgage loan. The amount of the credit will not be more than your annual federal income tax liability after all other credits and deductions have been taken into account. Your ability to take full advantage of the tax credit will depend on your individual tax liability

HOW TO APPLY:

You apply for the mortgage credit certificate at the same time you make a formal application for a mortgage loan. Funds are allocated by allotments and are not always available for immediate use.

WHAT DOES IT COST:

There is a $200.00 non-refundable application fee for an MCC consisting of a $150.00 payment to SHRA and $50.00 to the participating lender. There is no allocation of Mortgage Credit Certificates by Lender. After you have made a formal application, the Lender will arrange with SHRA to reserve funds for your MCC assisted mortgage loan.

LOAN TERMS:

MCC's are available with conventional loans; fixed-rate loans, adjustable rate loans, FHA and VA loans, and privately insured loans. MCC's are not available with bond-backed loans( e.g., Single Family Bond Programs, Cal Vet Loans, CHFA).

HOW LONG DOES AN MCC LAST:

As long as the home remains your principal residence and the original loan is not refinanced, the MCC will be in effect for the life of your mortgage loan. Each year, the credit certificate is calculated on the basis of (15%) fifteen percent of the total interest you paid on your mortgage loan that year.

CAN YOU REFINANCE:

If you refinance your mortgage you will lose your MCC. You must then apply to have your MCC reissued, one time only.

PROPERTY ELIGIBILITY: