Mortgage Credit Certificate (MCC)
More popularly known as the MCC, a mortgage credit certificate is a taxpayer privilege in the US in which the local government issues the said certificate so that the taxpayer can claim tax returns for a part of the mortgage interest paid throughout the whole year. Think of it as a tax refund geared especially toward your mortgage. The premise of this first time home buyer program is for applicants to get a chance to qualify for a loan by giving them the opportunity to offset a part of their total mortgage interest. In short, this serves as some sort of additional monthly income which is used as proof of capacity to pay.
How Do You Qualify for a Mortgage Credit Certificate?
Not all taxpayers, however, qualify for MCC and there are a few criteria to consider if you are thinking of applying for one. Since it is a program meant for those buying a house for the first time, one is automatically disqualified if he has owned a home in the last three years. There is also a provision requiring potential beneficiaries to have a certain amount of fixed income, as well as the ability to meet purchase price restrictions. The new house in question should also be declared as the principal residence.
Most of these conditions are waived in time of great need such as after a devastating natural disaster. In any case, it still remains to be dependent on the decision of the local government involved.
How Do You Apply for a Mortgage Credit Certificate?
Everyone needs a helping hand, even more so those who would be purchasing a house for the very first time, and this helping hand could not come in any better form than that of financial aid. If you qualify for such a certificate, then by all means go and apply for it. By obtaining this certificate, you could expect to qualify for bigger loan amounts, which could translate to a larger first home, depending on what you want and need. If you’re interested in getting a mortgage credit certificate, you can ask for assistance from a reputable real estate agent in your area as most of them are knowledgeable about this.