Monday, July 18, 2011
Home Loans Chick: Increase your buying power with MCC's!
Home Loans Chick: Increase your buying power with MCC's!: "If you fit the income guidelines which are very generous and have not owned a home in the past 3 years (unless buying in a targeted area) yo..."
Increase your buying power with MCC's!
If you fit the income guidelines which are very generous and have not owned a home in the past 3 years (unless buying in a targeted area) you may be interested in a mortgage credit certificate! This is a dollar for dollar tax credit that will put additional money into your pocket every month and that additional income can be used to increase your buying power!
Acquisition Cost Limits
You have to work with a participating lender which Legacy Group is and you must pay a fee of $650 to the Washington State Housing Finance Commission. Also, a first time homebuyer class is required.
This dollar for dollar tax credit will last you for the life of your loan. If you refinance you may be eligible to get it reissued. Certain guidelines do apply.
You can use this awesome credit on conventional, FHA, VA or USDA financing. There may be recapture tax if you sell within 9 years depending on your income and gain on sale so speaking with your tax advisor is strongly recommended.
If you are in the market for a new home and want to see if you qualify, please contact me and lets see if this program would work for you and what your credit would look like! You can also check out the Washington State Housing Finance Commission at http://www.wshfc.org/buyers/MCCprogram.htm for more information.
The income and sales price guidelines for Washington State are as follows:
Income Limits
Borrowers must not exceed these Maximum Annual Income Limits:
County | Non-Targeted 1-2 Persons | Non-Targeted 3+ Persons | Targeted 1-2 Persons | Targeted 3+ Persons |
| Jefferson/Skagit/Whatcom | $70,000 | $80,000 | n/a | n/a |
| Clark/Island/Kitsap/Pierce/San Juan/Thurston | $80,000 | $90,000 | $80,000 | $90,000 |
| King/Snohomish | $90,000 | $97,000 | $90,000 | $97,000 |
| All other counties | $65,000 | $75,000 | $80,000 | $85,000 |
Borrowers must meet these property acquisition cost limits. Acquisition cost limits of a single-family residence must not exceed the following:
County | Non-Targeted | Targeted |
Clark/Island | $330,000 | $360,000 |
Jefferson/Pierce/Snohomish | $370,000 | $395,000 |
King/San Juan | $450,000 | $475,000 |
Kitsap/Whatcom | $300,000 | $335,000 |
Skagit | $285,000 | n/a |
All Other Counties | $235,000 | $285,000 |
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