Member:
Executives Association of San Diego
Licensed by the CA Dept of Real Estate #01090117
Mortgage Credit Certificate (MCC) Program
What Is a MCC?
The MCC is a Federal Income Tax Credit program. The MCC entitles you to a federal income tax credit of 15% or 20% (15% City of San Diego, 20% County of San Diego) of the annual interest you pay on your home mortgage. Lenders recognize the benefit you'll get from the MCC and will qualify you for a bigger loan than you would normally get without the MCC. Of course you also get the normal tax deduction on the remaining interest you pay on the loan.
Who Qualifies?
You have not owned a principal residence in three years and you intend to occupy the home you are purchasing.
Your income does not exceed the limits for the program stated below.
You are approved by your lender for the purchase of a home.
San Diego County and City of San Diego MCC Program Limits:
| County of San Diego Regional Program | City Of San Diego Program |
|
Maximum Purchase Price: Resale $503,700, New $490,000 |
Maximum Purchase Price: Resale $543,112, New $663,800 |
|
Maximum Income: Family of 1 or 2: $82,800 Family of 3+: $96,600 |
Maximum Income: Family of 1 or 2: $72,100 Family of 3+: $82,915 |
County of San Diego Program:
The property to be purchased must be located within an unincorporated area
of San Diego County, or in the cities of Carlsbad, Chula Vista, Coronado, El
Cajon, Encinitas, Escondido, Imperial Beach, La Mesa, Lemon Grove, National
City, Poway, San Marcos, Santee, or Vista.
The cities of San Diego and Oceanside operate their own individual MCC programs.
Targeted Non-Targeted: A few census tracts in San Diego are designated "Targeted". The usual limitations listed above do not apply to purchases in these areas. The areas are very limited and usually do not apply to the vast majority of home buyers. If you think you might be interested please call us for more information about targeted areas.
Recapture Tax:
If you sell your home within nine years you may have to pay a recapture tax. Several conditions can exempt you from the recapture tax.Availability of Funds:
MCC funds are available on a first come first serve basis. Funds are usually available. You must apply for an MCC before closing your purchase. An MCC is not available after your escrow has closed.Mortgage Financing option for use with MCC's: Most loans qualify including 100% financing and some interest only loans. Ask us about this. There are some loan which are not acceptable to MCC including some ARM's, all "Option ARM's and those with payment changes sooner than 5 ears. Cal-Vet and CalHFA loans are not eligible. In some cases the lender will approve you for the loan but the MCC administrator will not approve the MCC's (ie. if your debt to income ratios are over 45%).
Call us for more information 858 495-1888