Wednesday, March 18, 2009

First Time Home Buyer Program

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 (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.

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