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Mortgage Credit Certificate (MCC)

IMPORTANT INFORMATION FOR CURRENT MCC HOLDERS: TAX REFORM MAY AFFECT RE-ISSUANCE OF MCCs

The U.S. House of Representatives has passed a tax-reform package that eliminates the Mortgage Credit Certificate (MCC) program after Dec. 31, 2017.

As it currently stands, the Washington State Housing Finance Commission will be unable to reissue any existing MCCs for homeowners who refinance their homes after Dec. 31, 2017. Currently, your MCC is in effect for the life of your home loan, but must be reissued if you refinance.

If you have an MCC and are considering refinancing your home, talk with your lender about your options. Until further notice, the MCC program will not be available for mortgages refinanced after December 31, 2017.
 

If you have an MCC and refinanced your home within the last 12 months, and have not yet requested the reissuance of your MCC, we encourage you to do so as soon as possible. The fee for reissuance is $375. MCC Reissuance Requirements Checklist (PDF)
 

If you have an MCC and have no plans to refinance, your MCC will be not change even if MCCs are eliminated as part of tax reform. However, as it stands now, if you do refinance after December 31, 2017, your MCC will be revoked and the Commission will be unable to reissue it.

All current MCC holders should be aware of this risk and take steps to protect their tax benefit if they can.

RECAPTURE TAX

A recapture tax may apply only in the event that:

  1. You sell your home in the first nine years; and
  2. Your income has increased significantly; and
  3. You have a substantial gain on the sale. IRS Form 8828 explains how the tax is calculated.

Federal Recapture Tax FAQ

REFINANCING YOUR PROPERTY

If you refinance your property on or before 12/31/17, 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.

IF YOUR MCC IS LOST

Please contact the Commission for a replacement certificate. There is a $35.00 fee for this service.

QUESTIONS

If you have questions about the Mortgage Credit Certificate Program, please call us at 800.767.4663 or email askusHO@wshfc.org

  

 
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