MCC Mortgage Credit Certificate Orange County, CA. What is it?

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Real Estate Agent with Sunset Properties, Powered by Movoto DRE #01485322

MCC Mortgage Credit Certificate, Orange County, CA

What is it?

 

The Mortgage Credit Certificate or MCC is a first time buyer benefit that is available to buyers whose income does not exceed the program limits.

 

Let's define a first time buyer. A first time buyer is a person who has never owned a home or has not been on title to a property for three years or more.

 

WHAT IS A MORTGAGE CREDIT CERTIFICATE (MCC)?  An MCC is an IRS tax credit that reduces the federal tax liability of a qualified borrower.  Although the program is always subject to change, as of this writing, the tax credit is 20% of the mortgage interest paid.

 

Does the MCC survive a refinance?  Once again, programs are subject to change, but I have a client who refinanced her property where an MCC was in place.  She completed the refinance and was able to keep the MCC benefit.  She visited the National Homebuyer's Fund website and followed the directions on how to keep the MCC benefit through the refinance.

 

Can the MCC boost a buyer's qualifications?  Potentially, yes.  Because the MCC reduces the borrower's federal income taxes and increases his/her net earnings, it can help the borrower qualify for the initial loan.  

 

It's important to note that both the mortgage broker (if you're using one) and the funding lender must both be approved for the program.  

 

It's not difficult for a lender to get approved, so it shouldn't be a roadblock to using your existing lender if they're not already approved.  The people at the National Homebuyer's fund are very nice and helpful!  I usually speak with Danh when I call.  The number is (866) 643- 4968.

 

How do you ensure you receive the tax benefit?  If you use the services of a tax preparer, be sure to make them aware that you have an MCC.

 

The National Homebuyer's Fund administers the MCC program as well as other programs that may be beneficial to buyers who qualify.  Check out nhfloan.org for more information.

 

JILL MURTY, Realtor | 949.355.5321

Contact me today to assist with your real estate needs.

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Comments (10)

Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

So the MCC did survive the refinance that your client did?  That's great.

May 14, 2015 05:51 AM
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Very cool that the MCC extends through a refinance.  Participating here is definitely on the 'to do' list.

May 14, 2015 07:17 AM
Noah Seidenberg
Coldwell Banker - Evanston, IL
Chicagoland and Suburbs (800) 858-7917

Great and informative MCC information Jill. You have shared an excellent resource for buyers.

May 14, 2015 02:22 PM
Jill Murty, Realtor - Orange County, CA
Sunset Properties, Powered by Movoto - Laguna Niguel, CA

Chris Ann Cleland - Yep, the MCC survived the refi.  The client completed a form during the refi and submitted it to the program administrator.  

John Meussner - I think there's value in knowing the program.  So many lenders don't know about it and don't want to bother.

Thanks Noah Seidenberg - I do hope buyers find it to be useful information!

May 14, 2015 02:52 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Hi Jill.  Excellent advice for those in the Orange County, CA area.

May 14, 2015 09:26 PM
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

That's great.  I thought I understood that correctly, but wanted to clarify.  Thanks.

May 15, 2015 03:48 AM
Jill Murty, Realtor - Orange County, CA
Sunset Properties, Powered by Movoto - Laguna Niguel, CA

Thanks Gabe Sanders.  I appreciate it.

Chris Ann Cleland - You were right on it!  I may rewrite it to clarify.

May 15, 2015 06:24 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Jill, sure sounds like the MCC Credit is a very positive benefit to buyers!   Thanks for explaining!    

May 19, 2015 10:55 PM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is great advice for prospective home buyers.

Thanks for sharing this information.

May 20, 2015 02:44 AM
Jill Murty, Realtor - Orange County, CA
Sunset Properties, Powered by Movoto - Laguna Niguel, CA

Joan Cox - Thanks for your nice comments!  The MCC can be a terrific benefit for those who qualify.  For those who make too much money to qualify, that's not exactly a bad thing, either.

Thanks Roy Kelley!  I hope realtors, prospective buyers and even lenders find the information useful.

May 20, 2015 04:37 PM

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