Homeownership Program Menu
Regular Homeownership Programs Set-asidesMortgage Credit Certificate Program (MCC)
Brief Description : The MCC allows eligible homebuyers to receive a dollar-for-dollar reduction in their federal income taxes of up to 20% of the annual interest paid on their mortgage. Borrowers can file an amended withholding statement with their employer, and increase their monthly take-home pay by the amount of the credit. This additional income can be used to help qualify a borrower for a loan. The MCC can be attached to any loan statewide, except for a loan financed through any other MBOH Program. Please keep in mind that the MCC is not a loan - it is a TAX CREDIT.
Mortgage Credit Certificate Program Guide*
(August 18,2008)
* Includes the required application and forms
- Individual documents at the bottom of the page.
MCC Invitation to Participate (May 20, 2009)
Tax Credit Criteria:
Federal Income tax credit only - not a State income tax credit
20% of mortgage interest paid converts to a federal tax credit
Remaining 80% of mortgage interest remains an eligible itemized deduction
Maximum annual credit $2,000
Not a "refundable" tax credit - unused credit can carry forward up to 3 years
Borrower and Property Eligibility Criteria:
Income and purchase price limits (click here )
First-time homebuyer(s); waived for targeted area or for eligible veterans
Home must be primary residence to claim credit
No asset limitations
Single Family home, townhouse, or condominium
Manufactured homes, with or without land
Limit of 15% use for Business
Land limited to 35% of value of property
for new construction only- Loan Criteria:
Buy or build
Interest rate and loan term set by lender
IRS Recapture potential - Underwriting Criteria:
Set by lender - Down payment Sources:
Any source, other than the seller, that is approved by the lender - Mortgage Insurance Information:
Set by lender - Reservation Process:
Lender on Line or via fax
180 days reservation limit for either new or existing homes -
Attention:
All Mortgage Credit Certificate holders
who have refinanced their MCC loan, please read the following documents.
Memo to explain re-issuance of MCC after refinancing
MCC Re-issuance Application and Affidavit
Documents:
MCC Submission Voucher-Exhibit A (pdf)
Application for MCC Issuance-Exhibit A-1 (pdf)
Mortgagor's Affidavit and Certification-Exhibit B (pdf)
Seller's Affidavit and Certification-Exhibit C (pdf)
Notice of Reservation Fee refund Guidelines- Exhibit D (pdf)
Form of Mortgage Credit Certificate-Exhibit E (pdf)
Mortgagor's Notice of Potential Benefits Provided By a MCC-Exhibit F (pdf)
Recapture Notice to Mortgagor-Exhibit G (pdf)
Notice to Mortgagor of Maximum Recapture Tax-Exhibit H (pdf)
Qualification as Veteran within meaning of 38U.S.C. Section101-Exhibit I (pdf) -
This is a summary of the MBOH program only. For a complete copy of the terms and conditions see the Regular Mortgage Purchase and Servicing Guide and the MCC Program guide.
