Are you thinking of buying a home in the DC Metro area? It’s a good time to buy now, especially since mortgage rates are quite favorable. However, if you have had trouble qualifying for a home loan, you may want to consider trying to get a mortgage credit certificate.
Tell Me About Mortgage Credit Certificates
Also referred to as an MCC, a mortgage credit certificate helps first-time home buyers qualify for a mortgage loan. MCC programs provide first-time 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 regards the percent of gross monthly income used for housing expenses.
How Do I Qualify For One?
Be sure to check with the city or county you’re planning to move to in the DC Metro to determine the exact guidelines to qualify for an MCC. Typically, the following standards are followed for most mortgage credit certificates.
- The price of the home must be within the MCC program’s specified limit.
- The homebuyer has to live in the home that’s purchased with an MCC mortgage.
- The homebuyer cannot qualify for an MCC if he or she owned a principal residence within the last three years.
- The homebuyer’s income must fall within a particular limit specified by the MCC program.
Still Have Questions About Mortgage Credit Certificates?
Contact our Washington, D.C. area real estate experts 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 options, and be sure to forward this article on to any friends or family that may be interested as well.
Long and Foster Realtors