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  Homeownership Next Step > MCC Option

 

 

Next Step

Homebuyer Program

 

Mortgage Credit Certificate (MCC) Option
 

MCC's provide income eligible first-time home buyers* an opportunity to reduce the amount of federal income tax owed each year they own and live in their homes. The MCC program gives qualified borrowers a non-refundable federal tax credit of 25, 35 or 45 percent of the total amount of mortgage interest they pay each year. This tax credit allows prospective buyers to obtain mortgage financing in a competitive market.

 

MCC with Cash Assistance Loan (CAL)

Provides a federal tax credit to first-time homebuyers* for the mortgage interest they pay on their loan each year. The mortgage will come from a certified lender using the MHDC Next Step CAL loan. The borrower will receive a 30 year fixed rate mortgage with a four percent cash assistance loan to help with down payment and closing cost assistance. The cash assistance loan will be in the form of a two year forgivable second mortgage. The amount of the tax credit will be 35 percent of the mortgage interest paid each year on the first mortgage loan.

MCC without Cash Assistance Loan (NON CAL) Program

Provides a federal tax credit to first-time homebuyers* for the mortgage interest they pay on their loan each year. The mortgage will come from a certified lender using the MHDC Next Step NON CAL loan. The borrower will receive a 30 year fixed rate mortgage at a lower rate than the CAL program. The amount of the tax credit will be 45 percent of the mortgage interest paid each year on the first mortgage loan.

 


 

 

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