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2009 SETH MCC Program

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					2008 SETH MCC Program
What is an MCC?
The Mortgage Credit Certificate (MCC)Program was
  authorized by Congress in the 1984 Tax Reform Act as a
  means of providing housing assistance to families of low
  and moderate income. It is an alternative to the bond
  (MRB) program.

The MCC is a tax credit that reduces the amount of federal
  income tax paid and provides additional available
  income to help qualify for a mortgage loan and assist
  with the new house payment.

The SETH MCC is available to buyers purchasing a
  residence in SETH’s jurisdictions and meeting required
  household income and purchase price limits. Buyers
  may be subject to paying a federal recapture tax if they
  do not remain during the recapture period - usually 9
  years.
A Mortgage Credit Certificate (MCC)
provides a federal income tax credit to the
borrower for as long as they own and
occupy their home.




Tax credits are a powerful way of increasing
a family’s annual income.
       What does an MCC do?
The federal government allows each homeowner to claim
  an itemized income tax deduction for the amount of
  interest paid each year on the mortgage loan. A
  deduction reduces the amount of income that is taxed.
The MCC Program takes a portion of the mortgage interest
  paid and turns it into a tax credit. A tax credit is an
  amount returned to the buyer either by increasing the
  amount refunded in their tax return or decreasing the
  amount of taxes owed.
Because they are good for the life of the loan, an MCC may
  save a homeowner thousands of dollars as long as the
  certificate holder is living in the home. MCC’s may be
  used with any loan type EXCEPT an MRB loan.
     Highlights of the 2008 SETH
            MCC Program
• The 2008 SETH MCC       • The maximum tax
  Program provides a        credit a homeowner
  tax credit of 30% of      can claim is limited
  the interest that the     to $2,000.
  homeowners pays         • Unused tax credits
  annually on their         can be carried
  mortgage loan. The        forward for up to 3
  credit may be taken       years to offset
  annually or monthly.      future income tax
                            liabilities.
 Example Of The Tax Credit Provided
    By The SETH MCC Program:

Loan Amount= $100,000
Interest Rate= 6%
 Homeowner pays $6,000 in mortgage interest that year
MCC Tax Credit Rate= 30%

As a result, the homeowner receives an MCC
Tax Credit= $1,800 ($6,000 x 30%)
First Time Homebuyers
under 80% of area
median incomes may
qualify for a $2,000
Grant with this program.
Can I Use The MCC Program?
You should answer “yes” to all of the following questions.


 Am I buying a home in one of the
  SETH jurisdictions
 Am I able to qualify for a mortgage
  loan with a participating lender?
 Is my income under the established
  limits based on location of the home
  and family size?
 Is the sales price of the home under
  $258,690?
  How is the Lender Involved?
Lenders basically are making mortgage
  loans- just like they do everyday. A
  borrower can use any of the lender
  products available in the market place.
  Lenders retain the servicing on the loan.
 The MCC’s are not issued directly to the
homebuyer. Buyers must obtain financing
    from local lenders who choose to
       participate in the program.
 What are the
 benefits?
• Additional tax credit
  each year (up to
  $2,000 annually)
• Tax credit can be used
  to help qualify for your
  mortgage loan
• MCC is assumable
  and may help you sell
  your home in the future
• $2,000 Grant for
  eligible first-time
  homebuyers
          How do I get started:




Get started today by contacting a participating lender from
               the list provided on our website.

  If you have any questions, you may call us directly at
                      281.484.4663.

				
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