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Essex Mortgage Presents February 5 th 2014. AE Name AE email address AE phone number. Mortgage Credit Certificate (MCC) Tax Credit Program. Monthly Savings. What products can I use with the MCC?. *VA *FHA *Conventional ** CHDAP 2 ND ** SAPPHIRE ** USDA
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Essex Mortgage PresentsFebruary 5th 2014 • AE Name • AE email address • AE phone number
What products can I use with the MCC? • *VA • *FHA • *Conventional • **CHDAP 2ND • **SAPPHIRE • ** USDA • *Tax Credit can help with qualifying – • The tax credit can be used an income to qualify. Or, if DU allows, it can be used to offset debt. • ** A tax credit allowed, but not for credit qualifying purposes.
CalHFA MCC Program • Three things considered: • Sales Price Limits - see CalHFA sales price charts • Income Limits – see CalHFA MCC income charts • Ownership status – 3 years tax returns will be required. • All charts are included in this presentation.
It starts here…. • The applicant applies for a loan with Broker. • Broker determines if the Applicant is a possible candidate for a CalHFA MCC Tax Credit based on income, acquisition costs, prior ownership and tax liability. • Buyer and seller sign and execute purchase and sale agreement. • Broker provides proper paperwork to Lender (later listed in this PowerPoint). • Essex will require 3 year tax returns, or Affidavit due to low income and no returns filed. • Essex will reserve the funds. • Essex reviews all documentation and provides MCC Certificate. • Essex closes the loan and submits to CalHFA after closing • Essex does not need to submit paperwork to CalHFA prior to our closing, allowing for a quick close.
Required MCC forms Those marked with an Arrow required at submission – the others will go out with docs.
Exception to a 1st time homebuyer CalHFA MCC Tax Credit Program 2014
Notes of Interest on how CalHFA calculates maximum household income forfamily or anyone who is living in the house – not just borrowers . • Schedule C or E Income – do not add back in depreciation. • Negative is a wash, not deducted. • Do not back out 2106 expenses. • 2013 and YTD income (no 2012 income is reviewed since we are in 2014). • P&L’s are okay for 2014. • In question, CalHFA will always take the higher income. • Child Support Payments • Social Security Benefits • Welfare Payments • Spousal support • Sick pay • Disability payments • Deferred income • Any regularly occurring additional income including but not limited to earnings
ELIGIBLE COUNTIES – All Counties In California!
How to determine if a target area? http://www.calhfa.ca.gov/homeownership/fdta/target-area.pdf To assist you in finding maps of federally designated targeted areas within each county, click on the census tract codes of each federally designated targeted area. If you have a street address, you an find the census tract number in which the property is located to compare with the list above by visiting FFIEC web site