California Down Payment Assistance

Alameda County Mortgage Credit Certificate

The Mortgage Credit Certificate Program (MCC) is a federal program that helps first-time homebuyers to qualify for mortgage loans. MCCs give homebuyers a “dollar for dollar” tax credit against federal income taxes equal to up to fifteen percent (15%) of annual mortgage interest. By effectively reducing monthly mortgage payments, MCCs give homebuyers greater ability to qualify for and support a mortgage loan. Program participants are subject to limits on maximum household income and maximum home purchase price. If the home buyers’ tax liability is lower than their available MCC tax credit, they can carry forward the unused tax credit for three additional years.

The MCC program for the City of Alameda is administered by the Alameda County Housing and Community Development Department. The County has administered the MCC program since 1989, assisting home buyers in traditionally high-cost housing markets throughout Alameda County. Since 1994, 110 households have been assisted through the MCC program in the City of Alameda. From 1999 through 2003, seven Alameda households were assisted through the Alameda County MCC for more information about the MCC program, or to obtain a list of participating lenders, contact the Alameda County Housing and Community Development Department office at (510) 670-5246, or visit their website at www.acgov.org/cda/mcc_program/. (02/04)

For more information about Mortgage Credit Certificates or other Down Payment Assistance programs you may qualify for,  you may either contact the County of Alameda or complete this simple online form.

For a complete list of upcoming no-cost on-line home buyer classes, follow this link - Upcoming First Time Homebuyer Classes

PROGRAM HIGHLIGHTS

 

County:	Riverside
Agency:	Economic Development Agency
Web-Site:	Link to Agency Web Site
Contact e-Mail:	Request More Information
Contact Us:	(866) 667-6724
How to Qualify:	Inquire Here
Eligible Homes for Sale:	Search using Listingbook
Program Description:	Mortgage Credit Certificate (MCC)
Maximum Loan Amount:	from $429,620 up to $525,090
Income Restrictions:	Yes
Requires Repayment:	No
Requires Matching Funds:	No
Eligible 1st Loan Terms:	15, 30, 40 Year Fixed Rate
Eligible 1st Loan Types:	FNMA, FMHLC, CalHFA, FHA, VA
Ineligible 1st Loan Types:	Bond backed loans - CalHFA, CalVet

 

 

PROGRAM SUMMARY

 

A Mortgage Credit Certificate (MCC) entitles qualified home buyers to reduce the amount of their federal income tax liability by an amount equal to a portion of the interest paid during the year on a home mortgage. This tax credit allows the buyer to qualify more easily for a loan by increasing the effective income of the buyer. The Riverside County MCC Program provides for a fifteen percent (15%) rate which can be applied to the interest paid on the mortgage loan. The borrower can claim a tax credit equal to 15% of the interest paid during the year.

Since the borrowers taxes are being reduced by the amount of the credit, this increases the take-home pay by the amount of the credit. The buyer takes the remaining 85% interest as a deduction. When underwriting the loan, a lender takes this into consideration and the borrower is able to qualify for a larger loan than would otherwise be possible. The following table illustrates how a MCC increases a borrower’s “effective home buying power”

 

PROGRAM DETAILS

 

Maximum Benefit:  Federal Income Tax Credit equal to 15% of mortage interest paid during year 

 

Maximum Purchase Price:  Outside Target Areas - $429,620 / Inside Target Areas - $525,090

 

Income Restrictions:  Based on Target Areas and Number of Persons in Household

 

Payments / Recapture:  The MCC is in effect for the life of the loan as long as the home remains the borrower’s principal residence. The MCC is not transferable to a new loan when refinancing, nor can it be assigned or transferred to a new buyer or another home.

 

In addition, the MCC Program includes a nine year recapture provision which provides for a return of tax credits taken if the property ceases to be the borrower’s primary residence within nine years from the close of escrow. The amount of tax recapture is determined by formula, and provided to the borrower at the time the application is taken.  After expiration of the nine year period, the borrower may dispense of the property without incurring penalty, but would lose the future benefits of the MCC.   

 

Eligible Properties:  The residence purchased in conjunction with a MCC must be the borrower’s principal residence and may not be used as a business or vacation home.  The home may be a detached or attached single family home, condominium unit, a co-op unit, or a manufactured home on permanent foundation (new or re-sale).   

 

Eligible Cities/Areas:  All Unincorporated Areas of Riverside County and within the City Limits of the following jurisdictions:

 

·        Banning ·        Beaumont ·        Blythe                                                ·        Calimesa                                  ·        Canyon Lake ·        Cathedral City ·        Perris                                                 ·        Corona ·        Desert Hot Springs                         ·        Hemet

·        Indio ·        Lake Elsinore ·        La Quinta ·        Moreno Valley                         ·        Murrieta ·        Norco ·        Palm Desert  ·        Riverside ·        San Jacinto  ·        Temecula

 

Ineligible Cities/Areas:   Please note that the following cities are not participating in the County’s MCC Program and MCC’s cannot be issued to purchasers of homes located within the City Limits of these cities:

 

·        Coachella

·        Palm Springs

·        Indian Wells 

·        Rancho Mirage

 

HOME BUYER COMMENTS -  If you are a home buyer that has experience with any of these programs.  Please post comments for the benefit of other First Time Home Buyers.