Transcript Document

Essex Mortgage Presents
February 5th 2014
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 AE Name
 AE email address
 AE phone number
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Mortgage Credit Certificate (MCC) Tax Credit Program
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Monthly Savings
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What products can I use with the MCC?
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 *VA
 *FHA
 *Conventional
 **CHDAP 2ND
 **SAPPHIRE
 ** USDA
 *Tax Credit can help with qualifying –
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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.
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CalHFA MCC Program
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 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.
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It starts here….
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 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
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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. 
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Where to find MCC Forms
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Required MCC forms
Those marked with an Arrow required at submission – the others will go out with docs.
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CalHFA MCC
Tax Credit
Program 2014
Exception to a 1st time homebuyer
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Lender vs. CALHFA Review of Income
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Notes of Interest on how CalHFA calculates maximum household income for
family or anyone who is living in the house – not just borrowers .
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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
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CalHFA MCC Borrower Eligibility
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CalHFA MCC Property Eligibility
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ELIGIBLE
COUNTIES –
All Counties
In California!
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CalHFA Sales Price Limits
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CalHFA Sales Price Limits
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CalHFA Sales Price Limits
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How to determine if a target
area?
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HTTP://WWW.CALHFA.CA.GOV/HOMEOWNER
SHIP/FDTA/TARGET-AREA.PDF
TO ASSIST YOU IN FINDING MAPS OF
F E D E R A L LY D E S I G N AT E D TA R G E T E D A R E A S
W I T H I N E A C H C O U N T Y, C L I C K O N T H E
C E N S U S T R A C T C O D E S O F E A C H F E D E R A L LY
D E S I G N AT E D TA R G E T E D A R E A .
I F Y O U H AV E A S T R E E T A D D R E S S , Y O U
AN FIND THE CENSUS TRACT NUMBER
I N W H I C H T H E P R O P E R T Y I S L O C AT E D
T O C O M PA R E W I T H T H E L I S T A B O V E B Y
VISITING FFIEC WEB SITE
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CHDAP MCC INCOME LIMITS
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CalHFA MCC INCOME LIMITS
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CalHFA MCC INCOME LIMITS
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CalHFA MCC INCOME LIMITS
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