Mortgage Credit Certificate Guidelines - San Diego Housing ...

HOMEBUYER ASSISTANCE PROGRAMSPROGRAM GUIDELINES MORTGAGE CREDIT CERTIFICATESThe Mortgage Credit Certificate Program operates as an IRS tax credit. With a MCC, the qualifiedhomebuyer becomes eligible to take a federal income tax credit of either 15% or 20% of the annual interestpaid on the mortgage each year for as long as the buyer lives in the home. This credit reduces the federalincome taxes of the buyer, resulting in an increase in the buyer’s net earnings and increases the buyer’scapacity to qualify for a mortgage loan. Applications are processed through participating MCC lenders.Homebuyer may be subject to recapture tax if they sell their residence within 9 years.Application fee:MCC Only: .2% of first trust deed loan or $250, whichever is greaterWith a deferred loan and/or closing cost grant:80% AMI: .2% of first trust deed loan or $250, whichever is greater100% AMI: $250The MCC can only apply to:• Purchases of single family homes including detached homes, condominiums or townhouses(duplexes and/or two-on-one units are not eligible).• FHA, VA or conventional loans with fixed or adjustable rates. No bond-backed loans such asCalHFA and Cal Vet, and no negative amortization loans.• Occupy the home as a principal residenceI. LOW INCOME MCCS / 20% TAX CREDITSTo qualify, the Buyer must:• Be a first-time homebuyer (no ownership in a property within the last three years)• Maximum household income:2013 Maximum Income LimitsHousehold Size Income Limit Household Size Income Limit1 $45,150 5 $69,7002 $51,600 6 $74,8503 $58,050 7 $80,0004 $64,500 8 $85,150• No Minimum housing debt ratio requirements• Property purchase price limited to:New/Resale: $786,924II.NON-TARGETED MCCS \ 15% TAX CREDITSTo qualify, the Buyer must:• Be a first-time homebuyer (no ownership in a property within the last three years)• Maximum household income:1 - 2 persons $80,6003+ persons $92,690• No minimum housing debt ratio requirement• Property purchase price limited to: $643,847

HOMEBUYER ASSISTANCE PROGRAMSPROGRAM GUIDELINES MORTGAGE CREDIT CERTIFICATESIII.TARGETED MCCS / 20% TAX CREDITSThe following modifications apply in certain targeted census tracts:• Do not need to be a first-time homebuyer• Income limits are higher:1-2 persons $ 96,7203+ persons $112,840• No minimum housing debt ratio requirement• Higher purchase price limits of:New/Resale: $786,924Targeted NeighborhoodsThe areas listed below are considered targeted under the MCC program. To see if subject property is in atargeted census tract, go to the bottom of first page of First-Time Homebuyer section and click CensusTract Information. Enter address information and compare census tract with below list.Targeted CensusTractsGeneral AreaThomas Guide Page62 Airport Area 1268/128866 Loma Portal 12689, 12, 16, 17, 18 Normal Heights 126956 Balboa Park 1269/128922.01, 22.02, 23.01, 23.02,24.01, 24.02, 25.01, 26.01,26.02City Heights/East SanDiego126927.07, 27.08, 27.09, 27.10 East San Diego 127033.02 Southeast San Diego 1289/129033.03, 34.04, 35.01, 36.01,36.02, 36.0340, 41, 45.01, 45.02, 46,47, 48, 49Southeast San Diego 1289Southeast San Diego 128939.01, 39.02 Logan Heights 128950, 51 Barrio Logan 128957, 58 Downtown 1289100.12, 100.13, 100.15,101.12San Ysidro 1350Last updated: May 9, 2013 2