The Mortgage Credit Certificate, MCC is a Great First Time Buyer Program for Those Who Qualify. Could it Be For You?
What is the Mortgage Credit Certificate program?
It is a 20% tax credit on the buyer's mortgage interest. It's an incredible benefit. A buyer who has been issued an MCC may file for the tax credit on their federal income taxes. The MCC is an annual benefit that is good for as long as the home is the buyer's primary residence. The MCC can also help increase a buyer's qualifying power for financing.
What is a first time buyer?
It seems pretty obvious, right? Of course, someone who has never owned a home is a first time buyer, but guess what? Someone who has previously owned a home can be a first time buyer again as long as they have not been on title to a property for at least three years. Interestingly, the first time buyer requirement is waived if the buyer is a veteran.
What are the Program Income Limits?
In Orange County, CA for a 1-2 person household, the maximum household income can be up to $131,160.00. For households of 3 or more, the annual income cannot exceed $153,020.00.
Is There a Maximum Purchase Price of the Home I Buy?
Yes. In Orange County, California, it is $625,765.00. In certain targeted areas, the purchase price can be up to $764,823.00, however, one must input each prospective property address into the system to determine if it is in a targeted area.
Does the MCC Survive a Refinance?
Yes, under most circumstances. Be sure to check with the Golden State Finance Authority gsfahome.org.
Is There an Application Fee?
Yes. There is for both the original purchase and for a refinance. It's well worth it if you qualify for the program.
What if my Lender isn't Familiar with MCC?
If your lender is not already qualified with the MCC program, no need to worry. They can easily get qualified if they wish to do so. If you're working through a mortgage broker, the funding lender must be qualified with MCC.
Per gsfahome.org:
Contact me today to find out if you qualify for the program and let's go out and find your new home!
Jill Murty (949) 355-5321 voice or text.
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