Have you been thinking about buying real estate in Chevy Chase, MD? It’s a good time to buy now, especially since mortgage rates are quite favorable. But if you have had trouble getting a home loan, you might want to consider trying to get a mortgage credit certificate.
An Overview On Mortgage Credit Certificates
Also referred to as MCCs, mortgage credit certificates are available to help first-time home buyers qualify for a mortgage loan. MCC programs provide buyers with a federal income tax deduction, where the lender can lower the housing expense ratio by the total of tax savings. The housing expense ratio is the percent of gross monthly income that is used for housing expenses.
Who Can Receive A Mortgage Credit Certificate?
The exact guidelines to qualify for an MCC vary by city and county. Typically, the following standards are followed for most mortgage credit certificates.
- The price of the home must be within a specified limit.
- The homebuyer cannot qualify for an MCC if the buyer owned a principal residence within the last three years.
- The homebuyer must live in the home that’s purchased with an MCC mortgage.
- The homebuyer’s income must fall within a particular limit stated by the MCC program.
Talk To Our Chevy Chase Realtors For More Information
Contact our Chevy Chase real estate professionals for more information on this type of mortgage. As a Member of the Top 5 in Real Estate Network®, I have a wealth of real estate and homeownership information that may be of help to you. Feel free to contact me any time to learn more about mortgage credit certificate programs.
Long and Foster Realtors