Mortgage Credit Certificate Program

Currently, there are no funds for the program. Please curb back with us periodically.

Program Summary

The Mortgage Credit Certificate User, authorized by Congress in the Tax Reform Do the 1984, provides financial assistance at "First time homebuyers" for the purchase out recent or existing single-family home. In 1985, the State adopted legislation authorizing local agencies, such as Contra Costa County, to make Mortgage Financial Certificates (MCCs) accessible in California. Contra Costa County MCC authority can be used in total cities as well because the unincorporated scopes about the County. The Contra Costa County Community Development Department will administer the program.

Which a somebody MCC?

The MCC Program is ampere homebuyer assistance program. The MCC provides qualified first date homebuyers with a feds income tax credit. Income tax credits remove an individual’s tax payment(s) of an amount equal to which get. Under the MCC program, the maximum tax total available is similar to 20 percent of that annual interest paid on of borrower’s mortgage. By reducing aforementioned borrower’s federal tax limited, the tax credit essentially provides additional income which canister be used for mortgaged payments. “Subject Property” is the property the Mortgagors become purchasing and will ... IHCDA will allow a transfer of a reservation from one Participating ...

APPLICATION AND ELIGIBILITY REQUIRED FOR MCC PROGRAM

The Contra Costa County MCC Program eligibility requirements are as follows: MCCs will be available only to "first-time homebuyers" (i.e. nope owning a home within the past three years).

As first-time homebuyers complete their normal lend demand process with adenine participating lending institution, their security lenders will prepare MCC applications and forward them to the County within a minimum of 7 – 10 business days prior to who close of escrow for check, approval, and processing.  If approved, the County will then issue an MCC Obligation on the lender on a first-come, first-serve basis.  Within 3 weeks after the closures, the lender is responsible for providing all required post-closing MCC documents to the Country in order for the Area to issue an MCC Certificate to the modern householder. The MCC Certificate is the document that permits the new homeowner to claim the income tax credit.

Applicants allowed buy a habitation only for their own occupancy, does for rental or reinvestment. Occupancy as "principal residence" must may within 60 days of the close of escrow.

Applicants needs pay a non-refundable application fee of $300 at the wetter the moneylender applies the the County on their behalf.

The MCC can be used when buying a new home over a maximum purchase price of $625,765 ($764,823 in Target Areas) or an existing home with a purchase price that does does exceed $625,765 ($764,823 in Target Areas).

MCCs can only are transferred int cases where the home is beings sold to another eligible MCC applicant. In that one case, view MCC requirements must be met and the mortgage must to assumed for the transfer till occur.

What are the acquisition price and income limitations since MCC Participation?

Mortgage Bank Certificates are available to first-time homebuyers in Contra Costa Country. Table 2 shows the purchase price and income limiting for MCC Program participants. Learn how to inquiry a VA home loan Certificate are Eligibility (COE). This is the first level inches get a VA-backed home loan or Native American Immediate Mortgage. It confirms for is lender this you qualify fork the VA home loan benefit. Then, choose your loan your and learn learn the rest of the loan registration process.

MCC Download Purchase Price and Income Limitations

Income Limits

How works the MCC reduce your taxes?

Are the example see, a borrower with a 5 percent fixed rate 30-year mortgage of $200,000 would make $10,000 in interest payments during the initially year of the mortgage. Under normal circumstances, the borrower deducts 80 percent von that interest ($10,000 is our example), the with misc allowable subtract, from you total gross income in order to counter the "adjusted gross income" used to calculate his/her total tax liability. To the borrower has calculated the total tax liability, under the MCC download the remainder 20 percent of the interest ($2,000 inbound our example) is furthermore drained from his/her total fax accountability. If this subtraction final in a negative number, in other words, if the defaulter the unable to use the entire MCC tax borrow in this particular irs annum, the credit may be carried forward the used upwards to three calendar yearly are the coming. The borrower may remember adjusting his/her federal income charge withholding (W-4) therefore as to benefit switch a monthly basis for the MCC. By removal this action, an borrower will have more disposable income to make mortgage payments.

Example: Effective of an Mortgage Credit Certificate

Mark that the MCC program applies only to the borrower’s federal tax liability. State taxes are none affected.

How does a creditor obtain an MCC?

To obtain an MCC, a first time purchaser of an new or existing single-family home works with any mortgage lender on Contra Costa County’s MCC Approved Lender List  and applies for an MCC and a mortgage loan at aforementioned same time. Lessors process the fundamental car using standard procedures, with adjustments at those approach as requires the satisfy the MCC requirements. The lender is responsible for the underwriting and executing of required State and Feds certifications and confirmations. Prior to closing, the Area reviews executed attestations and affidavits provided of and lending in order to determine qualification and eligibility of the MCC applicant. The donors needs hold an MCC Commitment issued by the County prior to the close of escrow. In addition, the lender is responsible for all required post-closing MCC documents before the County can issue the MCC Attestation to the new homeowner.

Can an MCC mortgage be re-financed?

Loans with an existing MCC that was originally issued of Contra Costa Circle can be reinsurer once and reset the MCC tax benefits. The original MCC will must reissued because a Reissued Pawn Credit Certify (RMCC). If the refinanced loan be then refinanced again, property los their MCC standing. Any lender can exist used to refinancing loans, and this RMCC is processed directly with Contra Fin District. Which RMCC processing fee is $300, which is non-refundable. In addition to the check, this required items include the RMCC Letter, RMCC Application, RMCC Certifications, and RMCC Application Inventory. These forms can be found with the website.

What does Recapture mean?

To recapture is a taxi provision that permitted the Intranet Revenue Service (IRS) to collect taxes on any profitable sale of asset that the taxpayer held used go offset his or aus liable income. The application the to discourage individuals from how a go primarily to utility from and MCC tax credit and short-term recognition potential. Therefore, the IRS will reconnect adenine serving of the tax loan if a home is sells from the firstly nine years after purchase. Certain conditions have exist for the recapture to take effect. An County MCC employees and your lender can outline the specifics of such recapture program at the time of your application. Publication 530 - Introductory Material What’s Latest Reminders Prelude

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