If you need assistance, please call 704-995-3330

What is A Mortgage Credit Certificate?

Thursday, October 10, 2013   /   by William Culp

What is A Mortgage Credit Certificate?

With the market making a rebound, buyers who had been on the fence are coming to the table to take advantage of favorable mortgage rates before they continue to rise. For those who have been having difficulty qualifying for a mortgage, it may be a good idea to try for a mortgage credit certificate.


 


A mortgage credit certificate, or MCC, makes it easier for eligible buyers to qualify for a mortgage loan. Offered by many city and county governments, they allow first-time buyers to take advantage of a special federal income tax write-off.


 


Under MCC programs, the lender can reduce the housing expense ratio – the percentage of gross monthly income applied toward housing expenses – by the amount of the tax savings. Normally, lenders reject loans if the housing expense ratio is too high.


 


Program requirements for MCCs vary, although most adhere to the following guidelines:


-The buyer must live in the home being purchased with an MCC-assisted mortgage.



  • -Total household income cannot exceed certain limits.

  • -The buyer cannot have owned a principal residence within the past three years. This restriction may be waived if a property is purchased within a certain targeted area.

  • -The purchase price must fall within an established limit.



If you are interested in applying for an MMC, call your local housing or redevelopment agency for more information, or contact your real estate agent.


 


As a Member of the Top 5 in Real Estate Network®, our team has a wealth of real estate and home ownership information that may be of help to you. Feel free to contact us any time to learn more about this important information, and be sure to forward this article on to any friends or family that may be interested as well.

Giving Tree Realty
Bruce & Brandy Bleiman
1244 East Blvd
Charlotte, NC 28203
704-995-3330
704-323-8080

Based on information submitted to the MLS GRID as of February 10, 2025 10 AM. All data is obtained from various sources and may not have been verified by broker of MLS GRID. Supplied Open House Information is subject to change without notice. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information. Some listings have been excluded from this website.
The data relating to real estate for sale on this site comes in part from the Broker Reciprocity/IDX program of Fayetteville Association of REALTORS®. Those properties marked with the IDX icon are provided courtesy of the Fayetteville Association of REALTORS®, Inc., Internet Data Exchange (IDX). Information Deemed Reliable But Not Guaranteed and Should be Independently Verified. Information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Copyright 2014 Fayetteville Association of REALTORS®. All Rights Reserved. February 10, 2025
This site powered by CINC: www.cincpro.com