MCC Tax Credit

Mortgage Credit Certificates Are Not Mortgages
   
 An MCC is a tax
credit which means fewer tax dollars can be withheld from your regular paycheck,
increasing your take-home pay.  The lender can use the credit to help increase
your buying power up to an additional 10%.

MORTGAGE CREDIT CERTIFICATE ELIGIBILITY
REQUIREMENTS

Available With New Purchase Loans

Must Be First Time Home Buyer (Not Owned A
Home In Previous 3 Years) Unless Purchasing In A
Targeted Area

Recapture Tax Applies

Income and Acquisition Limits Based On Family Size

Owner Occupied

WSHFC Home Buyer Education Required

Must Work With WSHFC MCC Participating Lender

Cost is $657.50

Can Be Renewed On A Refinance for $375.00 Fee

FHA Can Be Used As A Deduction From Monthly
Payment Qualifying For More Home

FNMA/VA/USDA Used As Income To Qualify For More
Home

Recapture Tax:

** Applies to the WSHFC Mortgage Credit Certificate program
only

Recapture only applies if all 3 of the following occur:

Your home is sold or disposed of within 9 years of
being purchased, for reasons other than your
death;

There is a capital gain on the sale of your home,
AND

Your household income for the year in which you
sell your home exceeds federal recapture tax
limits. See your lender for current limits.

Happy Investing!

Today's blog courtesy of Cheryl Taylor, American Pacific Mortgage

Earn $75000 When You Buy a House!

Want to earn tax credits when you buy a house? These may be potentially worth $60-75,000 over the life of your mortgage, depending on income and other qualifications.

Both the Washington State Housing & Finance Commission (WSHFC) and the National Homebuyers’ Fund (NHF) offer down payment assistance programs. One of the options under these programs is the “Mortgage Credit Certificate”, allowing a qualified homebuyer (Typically, higher income homebuyers with few deductions or credits) to claim up to 20% of annual mortgage interest paid as a federal income tax credit.

Here is how it works:

Borrowers are subject to income limits, and under some conditions may be subject to recaptured tax when they sell the home.

Borrowers should always consult a tax expert to figure out if the program is right for them. To find out more, please message me privately at HomeLandInvestment@gmail.com

Happy Investing!

Mortgage Tax Credit BIGGER than First-time Homebuyer Credit!

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!