WHAT IS AN MCC?
The MCC Program offers the first time homebuyer a federal income tax credit. This credit reduces the amount of federal taxes the holder of the certificate would pay. It can also help the first time homebuyer qualify for a loan by allowing a lender to reduce the housing expense ratio by the amount of tax savings.

The qualified homebuyer who is awarded an MCC may take an annual credit against their federal income taxes paid on the homebuyer's mortgage. The credit is subtracted dollar-for-dollar from your federal income taxes. The qualified buyer is awarded a tax credit of up to 15% and the remaining 85% are taken as a deduction from the income in the usual manner.

HOW DO I APPLY?
The County does not make loans. You, the homebuyer, go through the normal process of choosing a Realtor, finding a house, condo, townhouse mobile home or two unit properties (duplex) and arranging financing with a participating lender.  If you and the home you are buying are eligible, the lender fills out the MCC application forms for you, and sends them to the County for review. If you and your home qualify, the County can then issue an MCC.

After you receive your MCC, you can take the income tax credit every year, as long as you keep the same home and the original first mortgage and continue to live in the house as your principal residence.

There is a $250.00 NON-REFUNDABLE application fee for an MCC, of which $150.00 is passed on to the CDC.

INCOME TAX DETAILS
The MCC will reduce the amount of your income taxes due to the federal government; however, the tax benefit cannot exceed the amount of federal taxes owed for the year after other credit and deductions have been taken. Instead, the tax credits can be carried forward three years until used.

You may wish to adjust your federal income tax withholding in order to receive the MCC benefit on a monthly basis. Talk to your payroll department at your place of work. By reducing your monthly withholding, you will have more disposable (after-tax) income with which to make mortgage payments.

What is the difference between a "Tax Credit" and a "Tax  Deduction"?
A Tax deduction is subtracted from your adjusted gross income before you calculate your federal income taxes. A tax credit, on the other hand, entitles you, the taxpayer, to subtract the amount of credit from your total federal income tax bill.  We are not tax advisors.  If you have any questions about how your taxes will be affected, you should contact your tax accountant or the IRS at 800-TAX-1040.