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MCC

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									The Arlington Bank
 2009 Mortgage Credit
   Certificate (MCC)
       Program
 Contact Brent at The Arlington Bank for more
                  information
History of Federal MCC Program

•   Federal Government program
    established in 1984
•   MCC Program currently available Ohio
•   12.5 million in credits available
•   The Arlington Bank is currently 1 of only
    16 approved lenders in Ohio
Contact Brent at The Arlington Bank for more information
             What’s New with MCCs?
 Mortgage  interest credit
 Annual tax credit rates:
  – (20%) Credit for non-target areas
  – (25%) Credit for target areas
  – (30%) Real estate owned (REO)
     purchases
   Contact Brent at The Arlington Bank for more information
          What’s New with MCCs?
What is a Real Estate Owned (REO)
 Property?
An REO property is a single family property
 purchased from HUD, Fannie Mae, Freddie
 Mac, VA or USDA -RD, or from a financial
 institution that acquired the property
 through foreclosure.
   Contact Brent at The Arlington Bank for more information
             Current Guidelines
Applicants Must:
 Use The Arlington Bank
 Qualify under the current First-
  Time Homebuyer Program
  guidelines
Contact Brent at The Arlington Bank for more information
     Current Guidelines
4 categories for Ownership status:
1. Actual First time home buyers
2. No ownership in a principal
   residence in past three years
3. Buying in a Target area
4. Veterans
    Current Guidelines

 Saleprice of home
 See County income limits here
 Household Income
  –Both are higher in target areas
  –Limits vary by county
            Current Guidelines
 Acreage requirements:
 Acreage limits have changed and now
 follow the following guidelines:
  • 2 acre limit within a municipal
    corporation
  • 5 acre limit outside a municipal
    corporation
 Current Guidelines

What is a Target Area?
         And
  Where are they?
                Target Area
•   An economically distressed area as
    designated by HUD
•   Income and sales price limits are higher in
    target areas
•   Most counties contain both target and non-
    target areas
•   Do not have to be a first-time homebuyer
Interactive map of Target areas
•   The Arlington Bank can assist you by
    clicking here
           Current Guidelines
•   Must use a fixed rate loan product
•   Must pay a $300 fee at loan closing
•   Homebuyer education is required and can be
    completed online and over the phone
•   Homebuyer can adjust their W4 for and
    receive more money in their paycheck every
    week!
               MCC Exercise

   If a borrower has a loan for a REO
    property for $100,000 at 6.5% with a
    mortgage payment of $632.07 on 360
    month amortization, the first year interest
    would be $6,467.09. How much credit
    would the borrower be able to claim?
                    Answer
   The borrower would receive a credit of
    $1940.12 for the tax return filed for that
    year

								
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