Paul Scobee from Guild Mortgage gave me this scoop on the Mortgage Credit Certificate (MCC) program, which allows qualified borrowers to get a federal income tax credit of up to 20% of the mortgage interest that they pay annually. Buyers can take advantage of this program in addition to the $8,000 first-time buyer credit...but the MCC will last up to 30 years!
What is an MCC and How does it Work?
MCCs are tax credits that put extra cash in your buyers pocket each month, so they can more easily afford a house payment. This means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay.
Applications are accepted on a first-come, first-served basis by a statewide network of lenders. With only a few contributing lenders, Guild Mortgage is a participating lender. Your lender will establish all underwriting criteria, including interest rate, down payment requirement, etc.
MCCs are available with fixed or adjustable rate conventional conforming (i.e., Fannie Mae or Freddie Mac saleable), FHA, VA, and Rural Development mortgages.
As with any program, there are qualifying rules and regulations. For example: in King County the house has to be a single-family residence that does not exceed an acquisition cost of $450,000.
With MCC, a buyer qualifies for a larger monthly payment and hence, a bigger better house! I can refer you to savvy lenders like Paul Scobee at Guild Mortgage--just ask me for referrals!