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Mortgage Credit Certificate (MCC) |
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It's
two for one for first-time homebuyers closing before December 1,
2009 on home purchases in Bastrop, Blanco, Burnet, Caldwell,
Fayette, Hays, Lee, Llano and Williamson Counties.
Qualified buyers may use the one-time $8,000 federal income tax
credit and the Capital Area HFC mortgage credit referred to as
an MCC. The MCC allows homebuyers to take 30% of their annual
mortgage interest (up to $2,000) as a federal income tax credit.
The credit is limited to the homebuyers actual tax liability
but unused credit may be carried forward for up to three years.
The other 80% of annual mortgage interest continues to be
claimed as a deduction.
The MCC benefit may be claimed each year of the mortgage term as
long as the property remains the homebuyer’s principal
residence.
The MCC credit may help qualify homebuyers during the credit
underwriting process.
Homeowners may change their federal income tax withholding to
increase their take home pay or receive the benefit as a lump
sum when they file their annual federal income tax return.
Again, the benefit is limited to actual federal income tax
liability.
Example:
Homebuyer receives $140,000 mortgage at a 30 year fixed rate of
5.00%
First year interest = $6,953.09 x 30% MCC credit = $2,085.92
Maximum MCC first year tax credit = $2,000
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To Qualify for the MCC --
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Homebuyers must not have owned their primary
residence in the last three years **
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Their income cannot exceed
Bastrop,
Caldwell, Hays, Williamson
1-2 person households = $73,300
3 or more person households = $84,295
Blanco
1-2 person households = $64,311
3 or more person households = $73,958
Burnet
1-2 person households = $64,651
3 or more person households = $74,349
Fayette
1-2 person households = $64,800
3 or more person households = $74,602
Lee
1-2 person households = $63,120
3 or more person households = $73,640
Llano
1-2 person households = $60,960
3 or more person households = $71,120
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The purchase price of the home cannot exceed =
$258,690
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** The Veterans Exception allows Veterans who were discharged other than
dishonorably to qualify even if they owned a home in the last three years.
The MCC may ONLY be used with amortizing, fixed-rate FHA, VA, or conventional
loans that are acceptable to Fannie Mae or Freddie Mac. The credit cannot be
used in conjunction with a mortgage revenue bond loan.
In addition to normal, reasonable and customary closing costs, MCC fees at
closing are limited to a 0.75% fee to Capital Area HFC; $270 to the Program
Administrator and lenders may collect up to $75.
All those named on the Deed/Mortgage must attend
Homebuyer Education prior to closing. It must be provided by either
Frameworks or Business and Community Lenders of Texas (BCL).
Frameworks offers face-to-face training. BCL offers face-to-face
training and online training. Buyers may choose the type of training
they prefer. |
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FRAMEWORKS COMMUNITY DEVELOPMENT CORPORATION
701 Tillery St., Suite # A-7B, Austin, Texas 78702
Cost: Free
- English: Choose either the second or fourth Saturdays of the month 8am - 4pm
- Spanish: Class held the third Saturday of the month 8am - 4pm
Also required is a one hour 1-on-1 counseling with a counselor to discuss
credit, mortgage, qualification, etc.
Register online at
http://www.frameworkscdc.org
Those without computer access may call 512-385-1500 and speak with an intake
specialist
BUSINESS AND COMMUNITY LENDERS OF TEXAS (BCL)
2212 S. Congress Austin, Texas 78704
Cost:
$50 paid by borrower who will be reimbursed by CAHFC at closing
with a $50 credit off the Cap Area fee
Register:
512-912-9884 Racquel Valdez
- English and Spanish classes offered
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The next step is to contact a Lender. Lenders who provide the MCC include: |
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Capital Area Housing Finance Corporation
2009 First-Time Homebuyer Program
Participating Lender List rev 10-15-09
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