First-time homebuyers should take advantage of this little-known program.
I discussed mortgage credit certificates a few years ago, but now we have so many millennial first-time homebuyers that I thought it was a good idea to remind you about them. Be sure to ask your lender if they’ve been approved by your state and local governments to sponsor you for the MCC.
So what does the MCC do for you? Suppose that you pay $20,000 in annual interest. With the MCC, Los Angeles County allows a tax credit of up to 20% on that amount. If the credited amount has already been deducted from your paycheck, you’d get a refund back.
To be eligible for the MCC, your FICO score has to be above 620. For a two-person household, you can earn up to $135,000 and still be eligible. For a three-person household, you can earn up to $153,000. Most first-time buyers in Los Angeles who can afford to buy a home are also eligible for the MCC—that’s great news that you should share with any millennials and first-time buyers you know who are thinking of buying a home. Many people who do qualify for it aren’t aware it even exists.
If you have any questions about the mortgage credit certificate, don’t hesitate to reach out to me. In the meantime, stay safe!