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A recapture tax may apply only in certain circumstances:
*If you sell your home within nine years.
*If your income has increased significantly and you have a substantial gain on the sale of your home.
The IRS Form 8828 shows just how the tax is calculated.
Information to consider (cont'd):
Eligible properties are single-family homes, new construction, manufactured homes (permanently) affixed or on leased land. Homes located on Native American trust land, located on Targeted Areas and Non-Targeted Areas. Visit our Targeted Areas page to see if the property of interest is in a Targeted Area. In addition, there are business-use limits. No more than 15% of the residence may be used for trade or business purposes.
The MCC tax credit is valid for the life of the loan, or so long as you remain the owner/occupant of the residence. You also must attend a Washington Housing Finance Commission sponsored homebuyer seminar.
Questions about the MCC Program?
If you have further questions regarding the MCC Tax Credit and how it applies in Washington State, then simply call us at 425-390-INFO or email us at email@example.com
|All Other Counties||$235,000||$285,000|
Acquisition Cost Limits:
Borrowers must meet these property acquisition cost limits. Acquisition cost limits of a single-family residence cannot exceed the following:
3 or more Persons
3 or more Persons
|All other counties||$65,000||$75,000||$80,000||$85,000|
Income limitations do apply with the MCC tax credit
Borrowers can't exceed these Maximum Annual Income Limits:
Information to Consider
The Mortgage Credit Certificate (MCC) is available with many types of loan programs. MCC's are available with fixed rates and adjustable rates. It can be combined with conventional loans, FHA, VA, and Rural development mortgages. There is a non-refundable $650 fee that will be paid prior to closing on your new home.
The MCC tax credit is available with new home purchases only. Any refinancing on an existing mortgage is not an option. Unless the borrower is replacing a type of short-term bridge loan with a term of 24 months or less. Or if you are trying to refinancing using an existing certificate, further guidelines & restrictions do apply. Contact us at 425-390-INFO.
A Mortgage Credit Certificate (MCC) helps Washington state homebuyers achieve homeownership!
Each month it is now possible to get a tax credit which will show on your regular paycheck. The MCC is not a mortgage, it is a tax credit. The Mortgage Credit Certificate simply allows you to afford more in a house payment by giving you a monthly tax credit. The majority of Washington state homebuyers are not aware of this wonderful opportunity. If you have been thinking about purchasing a home now or sometime in the near future, you need to ask your participating lender to add the MCC to your loan application. A Mortgage Credit Certificate is a Federal Tax Credit allowing you to claim up to 20% of the annual mortgage interest paid.
How to Apply
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At Washington Housing Association, we harness the power of free education in new, innovative ways. Combining the newest market research with proven teaching methodology, we're inspiring students to take control of their homeownership experience. Washington Housing Association provides a huge stepping stone for our students to reach the future they envision. When it comes to educating the public on the acquisition of real property we are straight-to-the-point, and provide knowledge that you can use.
Homeownership begins with a first step. You can take this first step today or whenever you're ready with our new "Education For Home Buyers" program. Don't let calendars get in the way of your journey. We offer multiple classes each month for your convenience. All of our classes fulfill the requirements of the State; after completing the homebuyer seminar you will receive a certificate that can be used (for two years) with any Washington State Housing Commission loan program that you qualify for.
"This type of education is mind-blowing! The information presented gave me so much confidence!"
- JOANNE K. REILLY
"Washington Housing Association's class informed me of all of the opportunities and information I needed to finally become a homeowner."
- GEORGE O'BRIEN
"The sense of accomplishment I felt after completing this course was amazing!"
- TIM DOYLE