California Mortgage Credit Certificate Program

California Home Buyers May Be Eligible For The California Mortgage Credit Certificate Program

Great news for California Home Buyers. The California Housing Agency is now joint venturing with counties across the state of California so all California residents who want to become homeowners in the state of California can be eligible to the California Mortgage Credit Certificate Program, also called the MCC. The California Mortgage Credit Certificate Program is offered by the federal government where a credit is offered to a homeowner which can decrease the homeowner’s liability of their federal income tax. By reducing the homeowner’s federal tax liability, this ensures that the homeowner has extra net household income where they can allocate towards their monthly housing payment. The goal and purpose for the California Mortgage Credit Certificate Program, MCC, is to promote first time home buyers to purchase a home and make the housing payment affordable by converting a percentage of the homeowner’s annual mortgage interest expense into a direct dollar for dollar federal tax credit on the homeowners individual U.S. federal income tax returns.

California Mortgage Credit Certificate Program Eligibility

California residents can all qualify for the California Mortgage Credit Certificate Program if they meet the borrower and property program eligibility requirements. Below is the outline of the California Mortgage Credit Certificate Program Borrower Eligibility Requirements

California MCC Borrower Eligibility Requirements

  • The California home buyer needs to be either a citizen of the United States or be a permanent resident or other legal resident of the U.S.
  • The California home buyer needs to meet the definition of a California First Time Home Buyer. California First Time Home Buyers is classified as a home buyer who did not own a home in California for the past three years.
  • There are exemptions for home buyers who are not first time home buyers to qualify for the California MCC Program. The exempt home buyers who are not first time home buyers need to purchase a home that is located in a federally designated targeted location. The second exemption for non-first time home buyers to qualify for California Mortgage Credit Certificate Program is that the home buyer needs to be qualified veterans of the U.S. Armed Forces pursuant to the to the Heroes Earning Assistance and Relief Tax Act of 2008.
  • To qualify for the California MCC Program, home buyers need meet the maximum income limit requirement and need to meet the mortgage lending guidelines of the mortgage lender, the insurer, and the California Housing Finance Authority.
  • To qualify for the California Mortgage Credit Certificate Program, the home buyer need to be an owner occupant for the entirety of the mortgage loan term and/or until the property is refinanced and/or sold. 

Property Requirements For The California Mortgage Credit Certificate Program

Now if the borrower has qualified and met all of the necessary borrower requirements for the California Mortgage Credit Certificate Program, they now need to have the subject property meet the minimum standards and requirements in order to secure the MCC Program. Here are the property eligibility requirements:

  • The property’s sales price cannot be more than the allowable sales price limit in the particular county the property is located.
  • The lot size is limited to a maximum of a five acre parcel.
  • Only single family detached properties are allowed.
  • Detached homes that is within a PUD can qualify. A PUD is a home in a planned unit development.
  • The subject property can be a condo or an attached property unit within a planned unit development, PUD.
  • Guest homes and in law apartments and/or home may be eligible for California MCC Program.
  • The subject home needs to meet the guidelines and requirements of the California Finance Housing Authority, the mortgage lender, and the mortgage insurance company and/or guarantor of the mortgage.

California Mortgage Credit Certificate Program Eligible Counties

The California Mortgage Credit Certificate Program is available in every county where a Mortgage Credit Certificate Program is not currently available via a California Housing Finance Authority county at the time the mortgage loan is being originated.

How To Apply For California Mortgage Credit Certificate Program

The California Housing Finance Authority is not a mortgage lender. All California home buyer assistance mortgage loan programs are offered by private mortgage lenders who are approved by CalHFA. The Gustan Cho Team participates in most first time mortgage loan assistance programs for first time home buyers throughout the United States.

All Mortgage Credit Certificate Programs can have an impact on your federal tax liabilities and federal tax returns so it is the best interest for you to contact your accountant or tax advisor prior to pursuing a home purchase using the California Mortgage Credit Certificate Loan Program. The documents required to process your mortgage loan with the California Mortgage Credit Certificate Program is the same as the documents required to process any other loan program. For more information about qualifying for a home loan using the California Mortgage Credit Certificate Program, please contact The Gustan Cho Team at 262-716-8151. Please text us for faster response or email us at gcho@gustancho.com . We are available 7 days a week, evenings, weekends, and holidays.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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