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Mortgage Credit Certificate (M.C.C.)
Program Information

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OneRay HOME PAGE MCC Fact Sheet MCC Target Area Tracts MCC Eligile Income Limits LOAN PURCHASEAPPLICATION LOAN REFINANCE APPLICATION  

BENEFITS:

  • 20% of the mortgage interest paid on your home loan every year becomes a dollar for dollar tax “CREDIT” subtracted DIRECTLY from your Federal tax liability.
    • This is NOT a tax “DEDUCTION”. A deduction only reduces your income that you pay tax on. The MCC savings is subtracted directly from the tax obligation AFTER it is calculated on your adjusted yearly income.
    • Buyers qualify for a more expensive home price because the monthly savings from the MCC can be added to your employee W4 form so that you BRING HOME MORE MONEY on payday to help make the payment.
    • Benefit is received for the LIFE OF THE LOAN as long as the property is owner occupied.
  • Target areas and qualified veterans are allowed increased income limits and are not limited to first time homebuyers. Census tract list available at: OneRay.com/MCC
  • May be combined with FHA, VA, USDA-RHS, Fannie Mae or Freddie Mac purchase loans.
  • May be combined with most other homebuyer assistance and DAP programs.

QUALIFICATIONS:

  • Subject Property - Owner occupied primary residence. SFR, Condo, PUD and 2-4 units are allowed
    • Maximum Sales Price limits by County.
    County: Non-Target areas: Target Areas:
    Fresno County: $351,923 $430,129
    Madera County: $392,307 $479,487
    Tulare County: $300,000 $366,666
    Merced County: $436,154 $533,077
    San Luis Obispo County: $634,615 $775,641
  • Credit - No restrictions or requirements except as per purchase mortgage loan guidelines.
  • Income/Expenses - As per chart by family size and county.
    • Maximum income limits apply. Includes all persons who will live in the home and will be liable for the mortgage including any non-purchasing spouses.
    Max Gross Yearly Income: 1-2 Persons: 3+ Persons: Target Areas:
    Central Valley Counties: $71,400 $82,110 $85,680
    San Luis Obispo: $75,400 $86,710 $90,480
  • Assets - No restrictions or requirements except as per purchase mortgage loan guidelines.
    • $350 application fee paid to CHF at close.

RECAPTURE:
A sort of penalty if the home you buy with an MCC is sold or converted to a rental in the first 9 years. Recapture can only be assessed when:
  • You are making OVER the MCC income limit the year you move from the home and
  • You make a profit from the sale of the home after expenses.
NOTES:
  • Borrower - All buyers and any non-purchasing spouse must be “First Time Home Buyers.”
    • A FTHB has not owned a primary residence for the last three (3) years.
    • Non-Occupant co-signers may own a principle residence of their own.
    • Applicants may own rental properties but must not have lived there for the last three years.
    • Federal 1040’s must not show an IRS schedule “A” primary residence tax deduction for the last three years.
  • Subject to potential recapture.
  • Funds are limited. Allocated on a first come first served basis.