MORTGAGE CREDIT CERTIFICATE PROGRAM
Through its membership in the California Rural Home Finance Authority, the County of El Dorado receives a bond allocation which is used to support the National Homebuyer Fund (NHF). The County’s support enables low-to-moderate income residents of El Dorado County to take advantage of the programs created by NHF. When funding is available, these programs may provide financing, not only for the mortgage credit certificate program, but also for the first mortgage or the downpayment and closing costs associated with a home purchase for low-to-moderate income households.
National Homebuyers Fund, Inc. (NHF) is pleased to announce new Mortgage Credit Certificate (MCC) funds, available to eligible homebuyers in over 40 counties and cities of California. By working through your real estate agent and/or lender, access to these programs may be just a phone call away.
What is a Mortgage Credit Certificate (MCC)?
An MCC is an IRS tax credit that reduces the federal tax liability of qualified borrowers, thus having the effect of subsidizing the monthly mortgage payment. Currently, an MCC is a 20% tax credit that is in effect for the life of the loan as long as the property remains owner-occupied.
The MCC is available to qualifying low-to-moderate income persons who have not owned a home in the last three years. The property must be a primary residence single-family home, condominium or townhouse.
The advantages of an MCC are two-fold. It may increase the loan amount a borrower can qualify for and it may increase the borrower's after-tax income. The MCC entitles the qualified borrower to take a federal income tax credit. The tax credit is based on the mortgage interest paid annually. Because the MCC reduces the borrower's federal income taxes and increases his/her net earnings, it is a great help in qualifying for a home loan. The MCC is registered with the IRS, and it continues to decrease the borrower's federal income tax liability each year.
Key features of an MCC
•An MCC allows a homebuyer to claim a federal income tax credit on some portion of the mortgage interest paid annually;
•An MCC has the potential to saving the homebuyer thousands of dollars over the life of the loan; and
•The anticipated tax credit can be considered when evaluating the homebuyer's qualifying income for the mortgage loan.
†The information provided on this page contains general highlights only. All NHF administered loan programs have eligibility requirements and other guidelines.
For further information your agent or lender may call NHF toll free:
(866) 643-4968(866) NHF-4YOU
Or contact the El Dorado County Department of Human Services Housing, Community and Economic Development Programs
330 Fair Lane
Placerville, CA 95667
Phone (530) 621-5159
Fax (530) 642-0301