What is the Mortgage Credit Certificate Program anyway?
The MCC Program provides financial assistance to first time homebuyers for the purchase of single family homes, townhomes and condominiums. It is a dollar for dollar tax credit against the borrowers federal income taxes - currently15%. The remaining 85% remains a standard tax deduction.
Eligibility is for first-time Homebuyers who have not owned a home in the past three years, are purchasing a home in a participating city within the country, plan on living in the home and meet the income and purchase price limits.
The Borrowers income cannot exceed $97,000 for 1-2 persons or $112,470 for 3 or more (no co-signers allowed for this program).
The maximum purchase price is $570,000 for existing units and $630,000 for new construction.
If the borrower sells the property within nine years there may be a recapture tax penalty.
This program is only available with participating brokers and funding lenders. Applications are processed on a first come, first serve basis with an application fee of $275. For more information and details about this program to www.sccgov.org (go to affordable housing).
My 2 Cents - Make sure you are working with a mortgage broker up to date on all the programs currently available.