Mortgage Credit Certificate (MCC)

Mortgage

Credit

Certificate

(MCC)

Missouri Housing Development Commission

920 Main, Suite 1400

Kansas City, MO 64105

(816) 759-6600

(800) 246-7973

www.mhdc.com

Helping b o r rower s

in c re a s e th eir ability to

qualif y fo r a mor tg ag e

Information you will need to

take to your lender when ap-

plying for a MCC Loan:

 Residency history, employ-

ment history, recent pay

stubs, asset statements and

other documents relating to

certain circumstances which

may affect your financial

status.

For more information, contact

MHDC or a Certified Lender.

A list of Certified Lenders can

be found on our website:

www.mhdc.com

H o m e o w n e r

C h e c k l i s t

Missouri Housing Development

Commission MCC Program

Benefits

What is a MCC?

A certificate provided by the Missouri

Housing Development Commission (MHDC)

to the borrower that directly converts a

portion of the mortgage interest paid by the

borrower into a non-refundable federal tax

credit.

 The MCC can only be issued by MHDC

through a MHDC Certified Lender, and

are typically available only to low– or

moderate– income homebuyers.

 It is designed to help first-time

homebuyers qualify for a home loan by

reducing the borrowers tax liabilities

below what they would otherwise have to

pay.

 The MCC is good for the “Life of the

Loan.” The credit is worth:

 25% MCC Stand Alone

 35% if used with the Next Step CAL

Program

 45% if used with the Next Step

NON CAL Program

 Maximum allowable credit in a year is

$2,000.

 The homebuyer can carry forward the

unused portion of the credit up to three

years or until used, whichever comes

first.

* For more information, please visit the Missouri Housing

Development Commission website at www.mhdc.com.

MCC Program Eligibility

 First-time Homebuyers must not have

owned or had principal interest in their pri-

mary residence in the past three years.

 Homebuyers must apply with a certified

lender.

 Homebuyers must have qualifying credit

(minimum credit score required).

 Homebuyers must meet income and pur-

chase price limits (see charts on the right).

 The property can be a single-family de-

tached home, one-half duplex, semi-

detached homes, condominiums, town-

homes, or manufactured homes on a per-

manent foundation.

Purchase Price Limits

Non-

Targeted

Targeted

Single Unit $349,525 $447,542

Income Limits

For more information about targeted and non targeted areas,

please visit our website: www.mhdc.com/homes/targeted/

targeted_areas.htm.

Non Targeted Targeted

1-2 person 3+ person 1-2 person 3+person

Kansas City MSA

(Counties of Caldwell,

Cass, Clay, Clinton,

Jackson, Lafayette,

Platte and Ray)

$96,800 $111,320 $116,160 $135,520

Jefferson City MSA

(Counties of Cole,

Osage)

$82,700 $95,105 $99,240 $115,780

Columbia MSA

(Counties of Boone )

$88,000 $101,200 $105,600 $123,200

St. Louis MSA

(Counties of Franklin,

Jefferson, Lincoln, St.

Charles, St. Louis City,

St. Louis County and

Warren)

$94,900 $109,135 $113,880 $132,860

All Other Areas $80,900 $93,035 $97,080 $113,260

With a MCC Without a MCC

Adjusted

Gross income

$65,000 $65,000

Standard

Deducon

$12,000 $12,000

Taxable

income

$53,000 $53,000

Tax $7,600 $7,600

Tax Credit

for MCC

$2,000 0

Total Tax

Liability

$5,600 $7,600

The borrower can complete a new W-4 form with their employer

to receive more money in each paycheck .

Example of tax savings using the MCC program: