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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.

PARTICIPATING LENDERS

1st Security Bank

Academy Mortgage

Alaska USA Mortgage

American Financial Network

American Pacific Mortgage

AmericanWest Bank

Axia Financial

Bank of America

Banner Bank

Bay Equity Home Loans

Chase Bank

City First Mortgage Services

CMG Mortgage

Cobalt Mortgage

Comstock Mortgage

Cornerstone Home Lending

DHI Mortgage

Diamond Residential Mortgage

Directors Mortgage

Eagle Home Mortgage

Envoy Mortgage

Evergreen Home Loans

Fairway Independent Mortgage

First California Mortgage

First Priority Financial

Gold Star Mortgage Financial Group

Guaranteed Rate

Guild Mortgage

Heritage Bank

HomeStreet Bank

iServe Residential Lending

Kiel Mortgage

Land Home Financial Services

Landmark Professional Mortgage

LeaderOne Financial

loanDepot

M & T Mortgage

Mann Mortgage

Mortgage Advisory Group

Mortgage Express

Mortgage Master Service Corporation

Mortgage Research Center

Mortgage Solutions Financial

Mountain West Financial

Movement Mortgage

Network Funding

Network Mortgage Services

New America Funding

Pacific Residential Mortgage

Paramount Residential Mortgage Group

Pinnacle Capital Mortgage

Primary Residential Mortgage

Prime Lending

Procura Mortgage

Prospect Mortgage

Pulte Mortgage

Republic Mortgage

RPM Mortgage

SecurityNational Mortgage

Sierra Pacific Mortgage

Summit Funding, Inc.

Summit Mortgage Corporation

Umpqua Bank

Wells Fargo Home Mortgage

Westar Mortgage Corporation

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 and other loans.

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:

COUNTY

Non-Targeted
1-2 persons

Non-Targeted
3+ Persons

Targeted
1-2 Persons

Targeted
3+ Persons

Island/Jefferson/Kitsap/
Skagit/Thurston/Whatcom
$70,000 $80,000 $70.000 $80,000
Clark/Pierce $80,000 $90,000 $80,000 $90,000
King/Snohomish $90,000 $97,000 $90,000 $97,000
San Juan $75,000 $90,000 n/a n/a
All other counties $65,000 $75,000 $80,000 $85,000

ACQUISITION 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 $330,000 $360,000
Island $310,000 $360,000
Jefferson $310,000 $360,000
King $450,000 $475,000
Kitsap $300,000 $335,000
Pierce $370,000 $395,000
San Juan $450,000 $475,000
Skagit $285,000 n/a
Snohomish $370,000 $395,000
Whatcom $295,000 $335,000
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.

Federal Recapture Tax FAQ

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. 

IF YOUR MCC IS LOST

Please contact the Commission for a replacement certificate.  There is a $75.00 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.

08/14/2014

 
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Washington State Housing Finance Commission
1000 Second Avenue, Suite 2700, Seattle, WA 98104
Phone: 206.464.7139 or 800.767.4663 | Fax: 206-587-5113 | WebMaster@wshfc.org
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