MCCs are not mortgages… Mortgage Credit Certificates are tax credits that put extra cash in your pocket each month, so that you can more easily afford a house payment, which means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay. This program is also helpful for buyers with high debt to income ratios.
How to Apply: Applications are accepted on a first-come, first-served basis by a statewide network of lenders. Your lender will establish all underwriting criteria, including interest rate, down payment requirement, term, fees, points, and closing costs. Your lender will submit your loan application and notify you as to whether your application is accepted. It is strongly recommended that you contact a tax professional before applying for an MCC in order to determine the potential benefits an MCC may provide for your specific tax situation.
Loan Types: MCCs are available with fixed or adjustable rate conventional conforming (i.e., Fannie Mae or Freddie Mac saleable) FHA, VA, Rural Development mortgages. The Commission’s House Key State Bond Program is not available for use with the MCC Program.
MCC Fees: The nonrefundable MCC fee is $650 and it is collected at the time of loan closing.
Program Guidelines: As with any program, there are qualifying rules and regulations. MCC eligibility requirements include:
New Loans Only: The MCC is available with new purchase loans only. Refinances are not accepted, unless you are replacing some type of short-term bridge financing with a term of 24 months or less.
Contact me to learn how you can get qualified for this program.