MORTGAGE CREDIT CERTIFICATE (MCC) PROGRAM
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This particular Federal Program is administered through the Los Angeles County Community Development Commission. The MCC Program offers the first time homebuyer a federal income tax credit. This credit reduces the amount of federal taxes the holder of the certificate would pay. It can also help the first time homebuyer qualify for a loan by allowing a lender to reduce the housing expense ratio by the amount of tax savings. |
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The qualified homebuyer who is awarded an MCC may take an annual credit against their federal income taxes paid on the homebuyer’s mortgage. The credit is subtracted dollar-for-dollar from your federal income taxes. The qualified buyer is awarded a tax credit of up to 15% and the remaining 85% are taken as a deduction from the income in the usual manner. |
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The County does not make loans. You, the homebuyer, go through the normal process of choosing a Realtor, finding a house, condo, townhouse mobile home or two unit properties (duplex) and arranging financing with a participating lender. If you and the home you are buying are eligible, the lender fills out the MCC application forms for you, and sends them to the County for review. If you and your home qualify, the County can then issue an MCC. |
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After you receive your MCC, you can take the income tax credit every year, as long as you keep the same home and the original first mortgage and continue to live in the house as your principal residence. |
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There is a $250.00 NON-REFUNDABLE application fee for an MCC, of which $150.00 is passed on to the CDC. For further information please call (323) 890-7432 |
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The borrower must be a first time homebuyer (must not have held ownership in a residential property within the preceding three (3) years from time of application). |
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The home must be owner-occupied. |
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Borrower must invest a minimum of 1% of the down payment, not including closing costs. |
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All properties built prior to 1978 are required to have a visual and lead base paint inspection and must pass the inspection prior to loan approval. |
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Borrower must complete an 8-hour homebuyer education seminar from an approved HUD counseling agency. |
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Household income cannot exceed 80% of the median income for Los Angeles County. |
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Please call (323) 890-7432 for the maximum purchase price allowed for existing or new homes. |
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