Mortgage Credit Certificate (MCC) in California - Effective 2/2/2009

FEDERAL INCOME TAX CREDIT FOR HOMEBUYERS

MCCs are not mortgages...  they 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. 

HOW TO APPLY

Applications are accepted on a first-come, first-served basis by a statewide network of lenders.  C2 Financial Corporation via Massey Kouhssari will establish all underwriting criteria, including interest rate, down payment requirement, term, fees, points, and closing costs.  We 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.

PARTICIPATING LENDERS

C2 Financial Massey Kouhssari  NMLS 288498 - Call 949-244-1880

Mortgage Credit Certificate Providers in California

Mortgage Credit Certificate programs are sponsored or offered by one of three entities:

  • California Housing Finance Agency (CalHFA MCC),
  • GSFA MCC (Golden State Finance Authority)
  • County or City
    • Riverside County MCC – Funds Available
    • San Bernardino County MCC – Funds Available
    • Orange County MCC – Funds Available
    • Los Angeles City & County MCC – Funds Available
    • Call to inquire about MCC funds in other counties/cities

To check availability of funds before they run out It’s important to check with me, your BankerBroker® Massey Kouhssari 949-244-1880, to confirm MCC funds are still available and that you are eligible.

Click here for The CalHFA Mortgage Credit Certificate MCC Resource Database in your county & city.


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 and other loans.

The Commission’s Home Advantage Program is available for use with the MCC Program. 

MCC FEES

The nonrefundable applicable MCC fee 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. 

INCOME LIMITS

Borrowers must not exceed these Maximum Annual Income Limits:

MCC Eligibility

  • Must be a first time homebuyer (not owned a home in last 3 years)
    • Exceptions to this rule for those buying a home in a Federally designated area or you are a Qualified Veteran
  • Cannot exceed the county income limits.  Income limits can vary between which MCC provider is being used and whether you are buying in a federally ‘targeted’ area or non-targeted area.
  • Primary residence owner occupied homes only

ACQUISITION COST LIMITS

Borrowers must meet these property acquisition cost limits. Acquisition cost limits of a single-family residence must not exceed the following:

MCC Property Requirements

  • Price of the home cannot exceed the county sales limit
  • 5 acre maximum
  • 1 unit SFR, PUD, Townhome, or Condo
  • Home cannot have a guest house, “granny” unit, “in-law” quarters, and/or separate units containing kitchen facilities are not eligible

MCC Federal Designated ‘Target’ Areas

Like most other homebuyer assistance programs,  MCC providers have federally designated target areas which make qualifying for the mortgage credit certificate easier.  Learn about CalHFA Target areas here.

Single-family existing homes, new construction, manufactured homes (permanently) affixed or on leased land), and homes located on Native American trust land, located in both Targeted Areas and Non-Targeted Areas. Check the Commission’s website Targeted Areas page to see if the property is in a Targeted Area.  Note:  Not all counties have Targeted Areas. ELIGIBLE PROPERTIES

BUSINESS USE LIMITS

No more than 15% of the residence may be used for trade or business purposes. 

OWNER OCCUPANCY

The MCC is valid for the life of the loan, so long as you remain the owner-occupant of the residence. 

HOMEBUYER EDUCATION

You must complete a Commission sponsored homebuyer education course providing you with the steps to buying your home. 

RECAPTURE TAX

A recapture tax may apply only in the event that –  you sell your home in the first nine years, and - your income has increased significantly, and - you have a substantial gain on the sale.  IRS Form 8828 explains how the tax is calculated.

Federal Recapture Tax FAQ

REFINANCING YOUR PROPERTY

If you refinance your property, the MCC may be reissued if completed within one year of refinance and if you qualify under the program guidelines.  The amount on the reissued MCC cannot exceed the outstanding balance of the mortgage prior to refinancing and the certificate credit rate cannot exceed the certificate credit rate specified in the existing certificate.  Further restriction apply.

A $375.00 non-refundable application fee must be included in a reissuance request. 

IF YOUR MCC IS LOST

Please contact the Commission for a replacement certificate.  There is a $35.00 fee for this service.

QUESTIONS

If you have questions about the Mortgage Credit Certificate Program, please call Massey Kouhssari at 949-244-1880 or email massey@bankerbroker.com


02/08/2016

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