First Time Home Buyer MCC Tax Credit Programs for California

The Mortgage Credit Certificate Tax Credit program (“MCC”) is a federal tax credit which can help qualified first time California homebuyers reduce the overall amount owed on their federal income taxes creating additional net spendable income which borrowers may use towards their monthly mortgage payment. The MCC Tax Credit Program gives qualified first time homebuyers a dollar-for-dollar tax credit for a portion of the mortgage interest paid each year. It directly reduces a homeowner’s federal income tax liability. Several Cities and Counties throughout California offer MCC programs (the amount of the MCC tax credit will vary depending on the city and/or county). The MCC can be combined with California down payment assistance programs. The various California down payment assistance programs also have eligibility requirements related to maximum income and maximum sales price. Give us a call and we will review your application to see if you are eligible for one of the many California MCC and/or California home buyer down payment assistance programs available that will provide the most benefit to you. Don’t miss out on a California MCC Tax Credit Program since funds are on first-come, first-served basis.

How California Home Buyers Can Qualify for the MCC Tax Credit Program

• California First Time Home Buyers (no ownership interest in any principal residence within the last three years).
• Purchasing a home located in a federal designated targeted area provides an exception to the first time homebuyer requirement.
• Purchasing a single family detached home, condo or townhome.
• Occupying the home as your principal residence.
• Meet the required household income and sales price limits.

 

Benefits of Using a California MCC Tax Credit Program

• More house buying power- The MCC Tax Credit Program helps first time California homebuyers qualify for a larger loan amount.
• May be combined with a California Homeowners Down Payment Assistance Program to help with closing costs and down payment funds.
• Can be used on USDA, VA, FHA or conventional loan products.
• May lower debt ratio for better qualification.
• The MCC tax credit is available for the term of your mortgage loan. Some California MCC programs have a re-issuance program that allows the MCC to be transferred to the new loan on refinances.


Connect with a Loan Officer

Loan Officer Thomas Johnston

Loan Officer Thomas Johnston | NMLS# 1583463; Arizona, California, Oregon, Texas and Washington

Thomas is your mortgage loan originator, who works side by side with a strong team that shares the same devotion to excellence.
Experienced, knowledgeable, and always up to date on the industry's latest products, Thomas strives to exceed the customers' expectations in each and every transaction.

Do you have any questions? Please call 866-610-6025

Available Products


Agency Target vs Non-Target Tax Credit Household size: 1-2 Household size: 3+ Purchase Price Limits First Time Application Fee Property Type

City of Los Angeles Housing & Community Investment Department MCC Program

Target
15%
$99,600
$116,200
$595,978
Yes
$150
SFR,Townhome & Condo
Non-Target 15%
$99,600
$116,200
$595,978
Yes
$150
SFR,Townhome & Condo

Los Angeles County CDC Mortgage Credit Certificate MCC

Target
20%
$108,120
$126,140
$585,713
Yes
$300 each Application
SFR,Townhome & Condo
Non-Target 20%
$108,120
$126,140
$715,872
Yes
$300 each Application
SFR,Townhome & Condo

Riverside County Mortgage Credit Certificate - MCC

Target
20%
$70,000
$80,500
$336,145
Yes
$300.00, lender charge $100.00 proc fee
SFR-attached and detached,condo, co-opt, maufactured on perm foundation (new or resale)
Non-Target 20%
$84,000
$98,000
$410,842
No
$300.00, lender charge $100.00 proc fee
SFR-attached and detached,condo, co-opt, maufactured on perm foundation (new or resale)

Sacramento Housing and Redevelopment Agency Mortgage Credit Certificate-MCC

Target
20%
$70,000
$89,040
$103,880
Yes
$350.00
SFR
Non-Target 20%
$84,000
$89,040
$103,880
No
$350,00
SFR

San Diego Housing Commission (SDHC) Mortgage Credit Certificate-MCC

Target
20%
$109,080
$127,260
$564,353
Yes
$500.00 stand alone,$300.00 w/SDHC loan & grant
SFR, Townhome & Condos
Non-Target 20%
$109,080
$127,260
$689,765
No
$500.00 stand alone,$300.00 w/SDHC loan & grant
SFR, Townhome & Condos

CALHFA - California Housing Finance Agency-MCC

Target
20%
http://www.calhfa.ca.gov/ homeownership/limits/ income/income-mcc.pdf
http://www.calhfa.ca.gov/ homeownership/limits/ income/income-mcc.pdf
http://www.calhfa.ca.gov/ homeownership/limits/ salesprice/salesprice-mcc.pdf
Yes
$450.00 w/CalHFAfirst, $750.00 W/non-CalHFA first
SFR, Condo/PUD
Non-Target 20%
same as above
Cannot exceed CalHFAs sales price limit for each county-see above
Cannot exceed CalHFAs sales price limit for each county-see above
No
$450.00 w/CalHFAfirst, $750.00 W/non-CalHFA first
SFR, Condo/PUD

SCFHA-eHousingPlus -L.A. County (except City of L.A.) and Orange County

Target
20%
$108,120-L.A. County, $125,160-Orange County
$126,140- L.A. County, $146,020-Orange County
$585,713 - both counties
Yes
$300.00
SFR, Condo/PUD
Non-Target 20%
$108,120-L.A. County, $125,160-Orange County
$126,140- L.A. County, $146,020-Orange County
$715,872 - both counties
No
$300.00
SFR, Condo/PUD

San Bernadino County Golden State Finance Authority-MCC

Target
20%
$76,680
$76,680
$336,140
Yes
$350.00 standalone, waived if using a GSFA 1st
SFR detached & atttached, Condo/Townhome, *1-4 units,* Manufactured & *Mobile homes, * see guidelines for specifics
Non-Target 20%
$84,000
$89,460
$410,840
No
$350.00 standalone, waived if using a GSFA 1st
SFR detached & atttached, Condo/Townhome, *1-4 units,* Manufactured & *Mobile homes, * see guidelines for specifics

FHA Loan Credit Score

Learn about FHA Home Loan minimum credit score requirements. FHA loans provide great assistance to many first time home buyers by offering mortgage loans with lower down payments. Credit score requirements relax for FHA loans which is helping more borrowers qualify.

First Time Home Buyer in California

Simple way to mortgage and downpayment assistance programs available for first time home buyers in California. Find out if you are eligible and how to apply.

Tax Credit Tips

A tax credit is different than a deduction. A tax credit is applied to what is owed as a tax liability on your federal income taxes and a tax deduction is applied to your adjusted gross income. If the amount of your MCC is more than your tax bill, you can carry the unused portion forward for up to three years to offset future income taxes. Please discuss the MCC program with your CPA or tax advisor to make sure it’s something that makes sense for your finances.

All California MCC tax credit programs have a recapture tax if you sell your home within nine years of the purchase date.


Connect with a Loan Officer

Loan Officer Thomas Johnston

Loan Officer Thomas Johnston | NMLS# 1583463; Arizona, California, Oregon, Texas and Washington

Thomas is your mortgage loan originator, who works side by side with a strong team that shares the same devotion to excellence.
Experienced, knowledgeable, and always up to date on the industry's latest products, Thomas strives to exceed the customers' expectations in each and every transaction.

Do you have any questions? Please call 866-610-6025