What is an MCC by coold


									                                North Central Texas Housing Finance Corporation
                                The Mortgage Credit Certificate (MCC) Program
                                                    Fact Sheet
                                      Program Period Ends December 31, 2008

What is an MCC?                                                 Availability of Funds
The MCC is a Federal Income Tax Credit program. An              The Aggregate MCC Issuance Authority is $1,921,250. If
MCC provides a double bonus. It increases the loan              funds run out, it will be posted on the Program
amount you qualify for and it increases your take-home          Administrator’s website. You may apply for an MCC
pay. The MCC entitles you to take a federal income tax          only while escrow is open, NOT after your escrow has
credit of thirty-five percent (35%) of the annual interest      closed.
you pay on your home mortgage with the maximum
annual credit not to exceed $2,000. Because the MCC             How To Apply
reduces your federal income taxes and increases your              Choose a Lender enrolled in the Program to pre-
net earnings, it is a great help in qualifying for your first     qualify you for a loan and an MCC. See Lender list
home mortgage. But it doesn’t stop there. The MCC is              on    the     Program     Administrator’s    website:
registered with the IRS, and it continues to decrease             www.FSCHousing.com.
your federal income taxes each year for as long as you            After finding a property and having the seller accept
live in your home.                                                your offer, escrow will be opened.
                                                                  Read and sign your MCC Application and Affidavit
How to Qualify                                                    and other documentation that the Lender prepares
  Your household income and the purchase price                    and sends to the Program Administrator.
  must not exceed the limits shown below.                         Once your MCC application is approved the
  You must not have owned a principal residence in                Program Administrator issues your Lender an MCC
  the last three years.*                                          Commitment and an MCC Closing Affidavit.
  You must occupy the home.                                       Sign the MCC Closing Affidavit with the other
  You must apply for the MCC through a                            closing documents at the end of escrow.
  participating Lender, and pay a non-refundable                  Look for your MCC document in the mail within 30
  MCC Application Fee.                                            days after escrow closing.
  You must purchase a home within the Eligible Loan
  Area.                                                         Mortgage Financing
                                                                The Program does not place restrictions on the mortgage
MCC Program Limits                                              financing with regard to type, term or rate. Only first
Maximum Income:                                                 mortgages and no refinancing except to replace a
                Navarro County             All Other Areas      construction period loan or bridge loan of a temporary
1 or 2 persons: $54,300                    $66,500              nature. Also, no bond-backed financing is allowed.
3 + persons:    $62,445                    $76,475
                                                                Program Fees
Maximum Purchase Price:                                         MCC Application Fee                         $100.00
New & Existing:     $237,031                                    MCC Closing Package Review Fee              $250.00
                                                                MCC Issuance Fee 1.00% of the mortgage loan amount
Eligible Loan Area
                                                                The above fees should be made payable to “First
Texas cities of Cedar Hill, DeSoto, Duncanville,
                                                                Southwest Company”.
Lancaster, and Waxahachie and the Texas counties of
Ellis, Hunt, Kaufman, Navarro, and Rockwall.
                                                                Program Administrator
                                                                First Southwest Company administers the Program for
Recapture Tax
                                                                the Corporation. Sharon Gonzalez, Mary Koelling or
If you sell your home within nine years you may have to
                                                                Robert Johnson (214) 953-4122. All checks made payable
pay a recapture tax. Several conditions can exempt you
                                                                to "First Southwest Company."
from the recapture tax. Call the Program Administrator
or see your Lender for more details.

                                               Website: www.FSCHousing.com

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