In order to qualify for the MCC program you must meet the following requirements:
- Purchase a home within the Eligible Loan Area.
- Be a first-time homebuyer or have not owned a home, as a principal residence, during the last three years.
- Even if you are not a first-time buyer, you may be able to use the MCC program if you are buying in an area designated as economically distressed or are a Qualified Veteran.
- Annual household income and sales price do not exceed the maximum allowed income and purchase limits.
- Reasonable credit risk.
- Obtaining a first mortgage on the residence. (No refinancing is allowed)
- Buying the home as your principal residence.
- Do not intend to use the residence in a trade or business.
- Most types of homes qualify. New and existing single family homes, duplexes, town homes, condominiums and manufactured homes with certain restrictions are eligible properties.
- All mortgage loan types are eligible. The MCC program does not place restrictions on the mortgage financing with regard to type, term or rate. Except for loans tied to a tax-exempt bond program.
- Must have a tax liability in any given year during the term of your mortgage loan to benefit from the annual credit. Individual tax liability varies and could change year to year.