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Mortgage Credit Certificate (MCC) Effective 2/2/2009
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.
1st Security Bank
Alaska USA Mortgage
American Pacific Mortgage
Bank of America
Bay Equity Home Loans
City First Mortgage Services
Cornerstone Home Lending
Desert Canyon Mortgage
Eagle Home Mortgage
Evergreen Home Loans
Fairway Independent Mortgage
iServe Residential Lending
Landmark Professional Mortgage
M & T Mortgage
Mid America Mortgage
Mortgage Advisory Group
Mortgage Master Service Corporation
Mortgage Research Center
Mountain West Bank
Network Mortgage Services
Pacific Residential Mortgage
Pinnacle Capital Mortgage
Primary Residential Mortgage
Sierra Pacific Mortgage
Summit Funding, Inc.
Summit Mortgage Corporation
Universal American Mortgage
Wallick & Volk
Wells Fargo Home Mortgage
Westar Mortgage Corporation
Whidbey Island Bank
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 Home Advantage Program is available for use with the MCC Program.
The nonrefundable MCC fee is $650 and it is collected at the time of loan closing.
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.
Borrowers must not exceed these Maximum Annual Income Limits:
|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:
|All Other Counties||$235,000||$285,000|
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.
The MCC is valid for the life of the loan, so long as you remain the owner-occupant of the residence.
You must complete a Commission sponsored homebuyer education course providing you with the steps to buying your home.
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.