Attention Real Estate Agents!
Chances are your loan originator partners are not utilizing the first time home buyer program for Florida called the Mortgage Credit Certificate program or MCC for short. I’m actually amazed at the number of agents who don’t know about the program, and it’s not your fault! The mortgage originators you work with should be utilizing this program for the borrowers who have the option to use it.
The MCC Program is Not a Bond Program!
This isn’t a second mortgage to help with a down payment. The bottom line is that if the borrower is under the income limits for the program and has a Federal tax liability then they can benefit from the program. They can get up to $2,000 back on their taxes, EVERY YEAR THEY FILE THEIR TAXES! This is a great first time home buyer program and we should really be doing a better job as an industry promoting it to Floridians buying their first home, and actually anyone who hasn’t owned in the last 3 years is considered a first time home buyer for the purposes of the MCC program.
So How Can This Program Save a Deal?
The program can save a deal because that $2,000 credit is figured to be received in perpetuity for the near to midterm foreseeable future! That means the underwriter can use it as income! You might have a deal that for some unforeseen reason the debt ratios are higher than expected, if they qualify for the MCC program then that buyer can get up to $166 a month of income included in their debt ratios. This has and does save deals and you need to be aware of it! Keep it in mind when you’re buyer is running into a debt ratio problem! Your current lending partner may not be aware of the program but that doesn’t mean you have to be in the dark. For more info on the MCC first time home buyer program read up here.