Mortgage Credit Certificate (MCC) County Of San Diego

Funded

Updated: 10/07/2013

 

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FAQ Page - Max Assistance Maximum Assistance

Maximum Assistance DP CC MBC
FAQ -Page - How Funds Can Be Used FAQ -Page - How Funds Can Be Used FAQ Page - The Buyer Has A Minimum Amount That He Must Input
20%
No No 0
Tax credit reduces monthly payment
No maximum dollar benefit


FAQ Page - Who Is Eligible For This Program Who Is Eligible For Program

Type Of Buyer Income FAQ Page - How Income Works
First Time Buyer 1-2 72,300
3+people 83,145
Previous Owner 1-2 72,300
3+People 83,145
Displaced Homemaker Not eligible on this program
Target Areas  FAQ House No Bevel
Current Owners 1-2 86,760
3+people 101k
High Income 1-2 86,760
3+People 101k

 

FAQ Page - Maximum Purchase Price Maximum Purchase Price

Type Non Targeted Targeted
FAQ House No Bevel
Re-Sale 643,847 786,924
New-Const 643,847 786,924
Duplex 742,972 N/A
Duplex must be 5 years old

 

FAQ Page Debt To Income Debt To Income Ratios.

Front End Back End
Min Max Max
N/A N/A .45

 

FAQ Page - Program Method Program Method

Program Method FICO
FAQ Page FICO
Repay
FAQ Page Payment Required
Tax Credit N/A Maybe


FAQ House No Bevel Escrow Period

Minimum: 30 days
Recommend: 30 days

FAQ Page Seller Affidavit Seller Affidavit RequiredDownload Seller Affidavit

Yes

FAQ Page HQS HQS Inspection Required

No.

FAQ Page Maximum Assets Maximum Asset Test

No

FAQ Page Eligible Lender List Eligible Lender List?

Yes.

FAQ Page HBE Buyer HBE Cert Required

No.

FAQ Page Pre-Escrow Reservations Pre-Escrow Reservations

No

FAQ Page Buyer Charged A Fee? Buyer Charged A Fee?

Yes.  .002 of PP


 

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Buyers: Get A higher Purchase Price With Less Down & A Lower Payment

The MCC is a Federal Income Tax Credit program.  An MCC provides a double bonus.  It increases the loan amount you qualify for and it increases your take-home pay.  The MCC entitles you to take a federal income tax credit of twenty percent (20%) of the annual interest you pay on your home mortgage.  Because the MCC reduces our federal income taxes and increases your net earnings, it is a great help in qualifying for your first home mortgage.  But it doesn’t stop there.  The MCC is registered with the IRS, and it continues to decrease your federal income taxes each year for as long as you live in your home.
How to Qualify

  • ™Your household income and the purchase price must not exceed the limits posted.
  • ™You do not need to be a First Time Home Buyer and the income limits are higher if you are buying in a Targeted area. If you are not buying in a targeted area, then you must not have owned a principal residence in the last three years.
  • ™You must occupy the home.
  • ™You must apply for the MCC through a participating Lender, and pay a non-refundable MCC application fee of .002 X the loan amount (1st and 2nd if applicable) (Example: $300,000 total loaned X .002 = $600.00 fee)

 

Want even more information? Watch the First Time Home Buyer Tutorial located in our Video Tutorial Section

Still Have Questions? Call 877-696-7373 x777 or email Don Gardnier at Don@sd4u.com

Property Guidelines

™You must purchase a

  • Single-family detached home
  • Condominium
  • Townhouse
  • Duplex

Want even more information? Watch the First Time Home Buyer Tutorial located in our Video Tutorial Section

Still Have Questions? Call 877-696-7373 x777 or email Don Gardnier at Don@sd4u.com

Areas Served

Click the link below for a list of the areas served by the San Diego Regional MCC Program. The property being purchased must be within the boundaries of the listed cities or areas.Note:

  • Properties in the City of Oceanside are served by the Oceanside MCC Program, also administered by this program.
  • Properties with zip codes beginning with 921_ _ are within the City of San Diego and are served by the City of San Diego MCC Program.
  • Riverside has their own programs
  • For targeted census tracts, please contact us
  • Click here for the eligible cities

 

Want even more information? Watch the First Time Home Buyer Tutorial located in our Video Tutorial Section

Still Have Questions? Call 877-696-7373 x777 or email Don Gardnier at Don@sd4u.com

Loan Terms

Mortgage Financing You Can Use With MCCs Includes

  • FHA
  • VA
  • Conventional
  • USDA
  • 100% financing is OK and the MCC credit applies to both loans.

Prohibited loans or terms:

  • Back-end ratio over 45% unless written prior approval from Administrator.
  • CalHFA
  • Cal-Vet
  • ARM w/ Rate change within first 3 years
  • Interest-only fixed for less than 5 years.

Note:
The MCC (Mortgage Credit Certificate) can be used in combination with local downpayment assistance programs, offering substantial benefits to the homebuyer.

While the MCC program is not a loan, it still requires funding in order to provide you with the credit. REMEMBER. ALWAYS CHECK THE LEVEL OF FUNDING PRIOR TO MAKING AN OFFER. RECHECK THE LEVEL OF FUNDING PRIOR TO REMOVING YOUR CONTINGENCIES!

Want even more information? Watch the First Time Home Buyer Tutorial located in our Video Tutorial Section

Still Have Questions? Call 877-696-7373 x777 or email Don Gardnier at Don@sd4u.com

Issues That Cause Escrow To Fail

Like all transactions there are many reasons why a FTHB transaction can fail. But listed below are the most common;

  • Are un-permitted additions allowed? Yes.
  • Are un-permitted conversions allowed (like a garage conversion)? Yes
  • Is a section 1 termite clearance required? No
  • Is a home warranty required? No
  • Are there funds available for the program you are applying for?
  • If so, are the enough funds available that there will still be funds by the time your file is reviewed?
  • Does your household income exceed the maximum amount allowed for this program for ALL PEOPLE living and working in your house?
  • Is the buyer allowed to make any repairs out of their own funds to correct issues called out on the appraisal or by the program? Yes. This is important because if the house is in a condition that either entities will call out repairs, and the seller is not willing to correct the issues, then the transaction will fail.
  • Is the lender required to be on an approved list? Yes

 

Want even more information? Watch the First Time Home Buyer Tutorial located in our Video Tutorial Section

Still Have Questions? Call 877-696-7373 x777 or email Don Gardnier at Don@sd4u.com

Homeowners: This Program Can Help You Sell Your House For More

Homeowners frequently overlook First Time Home Buyer Programs (FTHB’s) and Down-payment Assistance Programs (DAP’s) when they are interviewing real estate agents for the listing of their home. But when you look at the facts, it is undeniable that the seller who caters to these buyers will almost always sell their home for a higher price than those who don’t. Let’s review

  • Have you ever wondered how to know if your getting the best possible price for your property? There are really two overriding factors which will determine if you maximized the potential in the sale of your home.
    • It is an accepted fact that the more people that walk through your house to look at it, the higher the price it will sell at. Think about it. If ten people walk through your home, perhaps 1 will hate it, 2 will not like it very much, 4 will think it is okay, 2 will like it and 1 will think it is the most awesome house that they have ever seen. Obviously the one that thinks it is the most awesome house ever would be the one that wanted to make the highest offer. You need to get enough people to walk through your house to make sure that you get the highest possible offers.
    • What is the maximum amount the buyer is allowed to offer? Now that you got enough people to walk through the property and have several really interested buyers. how much you get will depend directly on how much of a loan they are qualified for.
  • First Time Home Buyers are the largest single segment of buyers. It is in your interest to lure them in for a look.
  • What better way to lure them in than with
    • Custom signage that says that Down-payment Assistance may be available to them to help the purchase your home.
    • That your listing agent is an expert in these programs and will waive his consultation fees for any buyer who makes on offer on your home.
    • That your listing agent is an expert and can help the buyers agent write the offer is a way that it will conform to the program guidelines.
  • Now that they are interested, you can maximize the amount that they can offer you because we will help them qualify for any down-payment assistance that is available. We have helped buyers increase the amount the qualify for by up to 90,000 dollars. This is no sales pitch, review our comments on this website and also look at our Facebook page to see real comments by real buyers and sellers who have used these programs to maximize there transactions. At the bottom of this page you will find links to our customer comments and a link to our Facebook page.

At Gardnier Inc, we have beautiful, High Quality For Sale and Down-payment Assistance Signs that add to instead of detract from the curb appeal of your home. Additionally we have extremely high quality brochures printed and placed into the sign box on the post. The back of these brochures is dedicated to telling the buyers how we will waive our fees and help them qualify for these amazing programs if they make an offer on your home. Think about it, their payment can be as much as 700 dollars a month less if they buyer your house instead of your neighbors who used a different agent. Not only does it work, it is a Win-Win for everyone!

 

Want even more information? Watch the First Time Home Buyer Tutorial located in our Video Tutorial Section

Still Have Questions? Call 877-696-7373 x777 or email Don Gardnier at Don@sd4u.com

Possible Recapture Tax

MCC RECAPTURE TAX SUMMARY
If you purchase a home under the MCC Program, you may be subject to a recapture tax if you sell the home within nine years. The tax, if any, will always be the LESSOR OF:

  • Half the profit, or
  • The Tax

The tax is based on a complicated formula that takes into consideration:

  • The amount of the original home mortgage
  • The income guideline you qualified under
  • The number of years you stay in the home before selling
  • The increase in your income between purchase and sale

Generally speaking, you will owe no tax if:

  • It has been more than 9 years since you bought the home
  • Your resale is due to death or divorce
  • Your family income does not increase “substantially”. This means:

You owe no recapture tax if, in the year you sell the home, your Adjusted income (after all deductions including costs of sale) does not exceed the Maximum Gross Annual Income you qualified under to enter the Program, PLUS 5% (above that Maximum) added on for each year since you bought the home. This information changes periodically and you may always check to see if it is the latest by clicking here – MCC RECAPTURE TAX SUMMARY, and here Recapture Tax Notice #2. You will find that the example numbers used in the “Recapture Tax number 2″ link are outdated (for a previous year). While it is unlikely that you will owe a Recapture Tax, it is still possible. Gardnier Inc has created the MCC Recapture Tax Page to provide more up to date examples and a more in depth discussion of the possibility of your having to pay the Tax.

The above are broad, summary statements about a complicated tax. There is no way to know what your financial situation will be in the future, and this is not offered as tax advice. Gardnier Inc. Nor the MCC Program has no direct experience with the recapture tax, as neither are not affiliated with the IRS.

History Note: The MCC tax credit program was funded by Congress in the 1980’s, then eliminated in the early ‘90’s because it was thought that the nation could not afford the loss in taxes. The Program was brought back by popular demand with one new wrinkle— the recapture tax. Congress figured that if an MCC-holder’s income increased substantially, and a gain was made on the sale of the home, a modest tax might enable the MCC Program to stay funded indefinitely.

For more detailed information on the recapture tax, please see Recapture Tax Notice #2
Want even more information? Watch the First Time Home Buyer Tutorial located in our Video Tutorial Section

Still Have Questions? Call 877-696-7373 x777 or email Don Gardnier at Don@sd4u.com

 

How To Get Down Payment Assistance Programs Bevel 2Learn How To Use The True Mortgage CalculatorCheck Out All Of The Topics In The Video Library Use the True Mortgae Calculator for complete payment

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