Post date: Jan 25, 2014 4:37:32 PM

Getting a CHFA MCC is like getting up to a 50 percent discount off your mortgage interest rate. 

Here is how this works:

• • Pair the CHFA MCC with your CHFA First Mortgage Loan

  • Reduce the amount of federal taxes you owe by claiming 20, 30, or 50 percent* of your annual mortgage interest as a tax credit on your tax return.

  • Claim the remaining interest as a home mortgage interest deduction.

  • The result: You pay lower taxes and have more money to put back into your home or into savings!

savings example (Effective Rate)

Click table for a larger image. 

For example, if you are getting a loan for $250,000, the amount of interest you will pay in one full year is $8,750. (Loan amount X interest rate = annual interest). With an MCC credit rate of 20%, you would be eligible for a tax credit on your taxes of $1,750. (Annual interest X MCC credit rate = tax credit). The MCC savings will reduce your effective interest rate to 2.42%, saving you $145.83 a month!

how do you qualify?

• • First time homebuyers

  • Eligible veterans

  • Non-first time homebuyers purchasing in targeted areas

  • CHFA–approved homebuyer education required

  • Mid credit score of 620

  • Must live in the home as a primary residence

  • Income and purchase price limits (Targeted areas have different income and purchase price limits and no first time homebuyer requirements. These areas are determined by census tract.)

Call us at 949-244-1880 & Tell your BankerBroker "I want my MCC" to get the savings started! 

chfa mcc explained

Legal disclaimer:

Tax laws and regulations change frequently, and their application can vary widely based on the specific facts and circumstances involved. You are responsible for consulting with your own professional tax advisors concerning specific tax circumstances for your business. BankerBroker disclaims any responsibility for the accuracy or adequacy of any positions taken by you in your tax returns. This material is for informational purposes only & by no means to be taken as tax advice or tax consultation.

If you have questions regarding accounting issues specifically related to your industry or your business circumstances, you should consult with your own professional tax advisor, accountant, attorney, industry expert or professional association.