Originally Posted by rich68
My lender sends me this response
" I checked out this link and the MCC is a tax credit, that was the $8000 tax credit they did a few years ago for first time homebuyers. They are doing that anymore and it is not a specific loan, is was you just got a tax credit of $8000 when you file your tax returns. The down payments assistant program that they website also talked about was to use with (HUD) FHA loans. FHA loans require a down payment of 3.5%, this program will give you the down payment. The USDA program I have you on is also for first time home buyers but is a 100% loan. You don't need a down payment nor down payment assistant. USDA is a much better program than FHA."
I don't think we (lender) are on the same page about the MCC program. I am still trying to contact my Georgia state HFA and local HFA but haven't received any feedback yet. All I need to know if my lender is an "approved" lender and if so, how to get an MCC application. We are due to close on our loan soon and I am afraid we may miss out.
Applying for the MCC loan program is not very complicated. Homebuyers go through the regular home buying process. They contact a real estate agent or a broker to search for the right home. The homebuyer then applies for a mortgage loan from a participating lender or broker. The mortgage lender or broker must be qualified to answer all queries from the borrower regarding the MCC program. The lender then determines if the borrower is eligible for the program. Many factors are considered before the borrower is declared eligible for a MCC loan Program. These include the borrower's income, purchase price, prior homeownership, location of the property to be purchased and possible tax liability. If the homebuyer meets the guidelines set forth by the county's MCC, the lender may ask the borrower to sign the initial documents for application. The borrower may have to remit a non-refundable application fee to the lender. A part of it may be submitted to the county with the initial phase of the mortgage credit application.I guess you can contact MCC expert for more info in detail. Sorry , I am not a loan exeprt.
NOTE: People who have either received an original MCC or those who plan to refinance their existing MCC are eligible to participate in the RMCC loan Program. The best aspect of this loan program is that the people who apply for an reissued mortgage credit certificate Loan Program are not required to re-qualify on the basis of their income or the property's appraised value. The IRS regulations allowed present receivers of mortgage assistance certificate to refinance their original mortgage loans on their principal residence and obtain a new mortgage certificate with a tax credit rate the same as the original. The new loans can be lower or higher than the remaining balance of the original loan.
Under this program, borrowers are required to use a County-approved RMCC participating lender. Refinancing with a participating lender ensures that the lender is educated on the county's RMCC guidelines and will not inadvertently disqualify an MCC holder from future tax credits based on their new loan type. However, a RMCC loan replaces the existing MCC entirely thus the MCC holder cannot keep the existing MCC. Also, borrowers must keep in mind that neither the County nor the lender can guarantee that any individual will receive an RMCC.