New Income Limits for MCCs Begin September 1
AHFA has updated the maximum family income limits used for the Mortgage Credit Certificate program, effective September 1.
The newly revised income limits were released by the U.S. Department of Housing and Urban Development and are based upon the state's median income, which is $55,500. Home buyers can earn up to $83,250 in urban areas and $77,700 in rural areas, depending on family size and location.
The purchase price limits for the MCC program were updated earlier this year. Effective May 22, the maximum sales price in target areas is $312,361 and $255,573 in non--target areas.
Updated program documents, including recapture settlement disclosures, have been posted to Lender Online.
AHFA's Mortgage Credit Certificate program offers qualified buyers an annual tax credit to reduce the amount of federal taxes owed by a percentage of the mortgage interest paid each year. By reducing the amount of federal income tax owed, MCCs give potential home buyers more available income to qualify for a mortgage loan.
MCC recipients can change their income tax withholdings to reflect the lesser tax amount so that fewer tax dollars are withheld from their regular paychecks, increasing their take--home pay. MCCs are available with conventional fixed-¬rate, FHA, VA, Rural Development and privately insured mortgages as well as AHFA's Step Up program.