MCC Program rescues Edmonds Homebuyer! | Guild Mortgage | Tom Jarzynka

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MCC Program to the rescue for Edmonds Home Buyer! | Guild Mortgage | Tom Jarzynka

For any first time home buyers in (any area of) Washington State out there that are having a hard time getting approved to buy your first house, you will want to understand how the MCC program can help you achieve this goal.

I have a client that recently came to me to purchase his first home in Snohomish County – Edmonds, WA. He makes less than $90k per year, and is therefore within the income limits for the County. He works a full time job where he is paid hourly and then has a side business for the last 3 years that he makes a significant portion of his income from, as well. So, obviously the self employment income is based on his actual taxed amount after expenses/deductions, (which, of course, does not help our cause when it comes to the income we can use for qualifying). After we calculate his qualifying income for his business and his W2 job, we are left with a qualifying ratio that is extremely tight… especially, when he is interested in purchasing a little higher sales price range than originally expected.

Anyway, the bottom line is that the MCC program allowed us to add back an additional ~$200 per month in income and he will have a tax credit (not a deduction) of around $2,400 that can be applied to his tax liability which will help him with his taxes owed at the end of each year as long as his home is his primary. Not to mention he can now buy the house he wants! Clink on this link for a breakdown of a similar example of how the MCC program works.

This is just another example of how the MCC rocks and can completely save the day! If you are first time home buyer and are interested in understanding if the MCC program could work for your scenario, give me a ring.

"Terms and conditions apply. All loans subject to underwriter approval."

***Based on the “Washington State Housing Finance Commission MCC Program.” Mortgage Credit Certificates are authorized by congress and are federally funded tax credits for qualified first time buyers.  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.  Add assumes the borrowers has a tax liability equal to 20% of the interest paid on mortgage. The MCC is available with new purchase loans only. Refinances are not accepted. Buyer must earn less than $90,000 a year and purchase a home with a total acquisition cost of less than $450,000.00 in King County Washington.  For more information contact Washington State Housing Finance Commission at 206-464-7139.  The non-refundable MCC fee is $650 and it is collected at the time of closing. Potential recapture taxes may apply.  

MCC Program | Edmonds | Tom Jarzynka | Guild Mortgage

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Thomas Jarzynka
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