I made up this flyer to explain a great first time home buyer's program that give tax credits to buyers.  Hallmark is one of the few lenders approved in Indiana to offer this program.  It generally only takes about 6 months to make up for the upfront fee & every month after that is pure savings!  This is truly a great government program that not enough people know about!

You can also go to Indiana Housing's website for more information about the program: http://ihcda.in.gov/buyers_faqs.aspx

7421 Coldwater Road

Fort Wayne, IN 46825

Phone: 260-469-0917 • Fax 888-719-2706

Mortgage Credit Certificate (MCC)

Offered by:

Indiana Housing & Community Development Authority (IHCDA)

Did you know that your 1^st time home buyers could qualify for a tax credit on their federal income taxes?  There are only 3 requirements:

1. Must be a 1^st time home buyer:  Anyone who has not had ownership interest in a home during the past 3 years.  
2. Household Income Limit (Fort Wayne & surrounding area)
   • 1-2 member household: $60,600
   • 3+ member household: $69,690
3. Acquisition Limit (Fort Wayne & surrounding area)
   • New or existing home sales price limit: $237,031

• Reservation Fee = 0.50% of the mortgage amount
  • Example: $100,000 mortgage x 0.50% = $500 one-time fee up front
•   How does it help a customer qualify?
  • FHA:  The monthly MCC credit can be subtracted directly from the buyer's proposed PITI before the ratios are calculated.
  • Conventional:  The monthly MCC credit should be added to the borrower's income before ratios are calculated.
  • VA:  The borrower's federal tax liability should be reduced by the MCC credit.  This will only improve the buyer's residual income position and will have no impact on the buyer's ratios.
• Reservations are being accepted on a first come, first serve basis
• Takes no extra time to close & requires no additional inspections

MCC Credit Chart

Loan Amount                                                                                                MCC Tax Credit %

$90,001 +                                                                                                        20%

$70,001 to 90,000                                                                                         25%

$50,001 to 70,000                                                                                         30%

$0 to $50,000                                                                                                  35%

Example Yearly Tax Credit Calculation

If a customer bought a home with a $100,000 loan amount at 6.500% interest rate, they would get a tax credit of $6,500 (annual interest) x 20% = $1,300!  That equals $108.33 every month for the first year!

For more information please contact:

Nathan J. Gaier

The Gaier Team

Senior Mortgage Consultant

Hallmark Home Mortgage

7421 Coldwater Road, Fort Wayne, IN 46825

Office: 260-469-0917 or 888-490-1428 (receptionist)

Cell:   260-615-9676

Fax:   888-719-2706

e-mail: ngaier@HallmarkHomeMortgage.com

www.HallmarkHomeMortgage.com/ngaier