HOME BUYER PROGRAMS
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Mortgage Credit Certificate (MCC) 2009
Effective 02/02/2009
Federal Income Tax Credit for Homebuyers
MCCs are not mortgages... they are tax credits that put extra cash in your pocket each month, so that you can more easily afford a house payment, which means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay.
How to Apply
Applications are accepted on a first-come, first-served basis by a statewide network of lenders. Your lender will establish all underwriting criteria, including interest rate, downpayment requirement, term, fees, points, and closing costs. Your lender will submit your loan application and notify you as to whether your application is accepted. It is strongly recommended that you contact a tax professional before applying for an MCC in order to determine the potential benefits an MCC may provide for your specific tax situation.
Participating Lenders
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1st Security Bank Academy Mortgage Alaska USA Mortgage American Pacific Mortgage Axia Financial Bank of America Banner Bank Bay Equity Home Loans Chase Bank Cobalt Mortgage Cornerstone Home Lending DHI Mortgage Directors Mortgage Eagle Home Mortgage Evergreen Home Loans Guaranteed Rate Guild Mortgage HomeStreet Bank LeaderOne Financial M & T Mortgage Mid America Mortgage |
Mortgage Advisory Group Mortgage Master Service Corporation Mortgage Research Center Network Mortgage Services Pacific Residential Mortgage Pinnacle Capital Mortgage Primary Residential Mortgage Prime Lending Prospect Mortgage Pulte Mortgage Republic Mortgage Sierra Pacific Mortgage Sound Mortgage Sterling Bank Summit Funding, Inc. Summit Mortgage Corporation Umpqua Bank Universal American Mortgage Wallick & Volk Wells Fargo Home Mortgage WJ Bradley |
Loan Types
MCCs are available with fixed or adjustable rate conventional conforming (i.e., Fannie Mae or Freddie Mac saleable) FHA, VA, Rural Development mortgages. The Commission’s House Key Opportunity Program is not available for use with the MCC Program.
The Commission’s Home Advantage Program is available for use with the MCC Program.
MCC Fees
The nonrefundable MCC fee is $650 and it is collected at the time of loan closing.
Program Guidelines
As with any program, there are qualifying rules and regulations. MCC eligibility requirements include:
New Loans Only
The MCC is available with new purchase loans only. Refinances are not
accepted, unless you are replacing some type of short-term bridge financing
with a term of 24 months or less.
Income Limits
Borrowers must not exceed these Maximum Annual Income Limits:
|
Non-Targeted
|
Non-Targeted
|
Targeted
|
Targeted
|
|
Jefferson/Skagit/Whatcom |
$70,000 | $80,000 | n/a | n/a |
|
Clark/Island/Kitsap/Pierce/Thurston |
$80,000 | $90,000 | $80,000 | $90,000 |
|
King/Snohomish |
$90,000 | $97,000 | $90,000 | $97,000 |
| San Juan | $78,000 | $90,000 | n/a | n/a |
| All other counties | $65,000 | $75,000 | $80,000 | $85,000 |
Acquistion Cost Limits
Borrowers must meet these property acquisition cost limits. Acquisition cost limits of a single-family residence must not exceed the following:
County |
Non-Targeted |
Targeted |
| Clark/Island | $330,000 | $360,000 |
| Jefferson/Pierce/Snohomish | $370,000 | $395,000 |
| King/San Juan | $450,000 | $475,000 |
| Kitsap/Whatcom | $300,000 | $335,000 |
| Skagit | $285,000 | n/a |
| All Other Counties | $235,000 | $285,000 |
Eligible Properties
Single-family existing homes, new construction, manufactured homes (permanently) affixed or on leased land), and homes located on Native American trust land, located in both Targeted Areas and Non-Targeted Areas. Check the Commission’s website Targeted Areas page to see if the property is in a Targeted Area. Note: Not all counties have Targeted Areas.
Business Use Limits
No more than 15% of the residence may be used for trade or business purposes.
Owner Occupancy
The MCC is valid for the life of the loan, so long as you remain the owner-occupant of the residence.
Homebuyer Education
You must complete a Commission sponsored homebuyer education course providing you with the steps to buying your home.
Recapture Tax
A recapture tax may apply only in the event that – you sell your home in the first nine years, and - your income has increased significantly, and - you have a substantial gain on the sale. IRS Form 8828 explains how the tax is calculated.
Refinancing Your Property
If you refinance your property, the MCC may be reissued if completed within one year of refinance and if you qualify under the program guidelines. The amount on the reissued MCC cannot exceed the outstanding balance of the mortgage prior to refinancing and the certificate credit rate cannot exceed the certificate credit rate specified in the existing certificate. Further restriction apply.
A $375.00 non-refundable application fee must be included in a reissuance request.
What if your MCC is lost?
Please contact the Commission for a replacement certificate. There is a $75.00 fee for this service.
Questions about the MCC Program?
Please call us at 800.767.4663 or email askusHO@wshfc.org.
05/10/2013