Mortgage Credit Certificate (MCC) in California - Effective 2/2/2009
FEDERAL INCOME TAX CREDIT FOR HOMEBUYERS
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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
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.
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.
CalHFA county income limits (Orange County)
GSFA MCC income and sales price limits here (San Bernardino County)
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
Click Here for a MCC How Mortgage Tax Credit works in a pdf document
02/08/2016