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Presentation Description

MCC Mortgage Credit Certificate Intro

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By: saniraj.tarade (65 month(s) ago)

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Presentation Transcript

Mortgage Credit Certificate (MCC)20% Tax Credit : 

Mortgage Credit Certificate (MCC)20% Tax Credit

What Is An MCC? : 

What Is An MCC? Is like a 20% off coupon but in is not a coupon it is a certificate worth 20% of all the interest paid on your loan and it come in the form of tax credits. Tax Credits are a dollar-for-dollar reduction of the total federal income tax a borrower pays ! The Credit for 20% of your interest paid lasts for the life of the loan.

How Does It Work? (FHA) : 

How Does It Work? (FHA) Sales Price $ 375,000 Down Payment 3.5% $ -13,125 Base loan Amount (5% 30year fixed) $ 361,875 Total Loan w/ UF Mortgage Ins $ 368,207 Interest Paid Annually @ 5% $ 18,410 20% of Annual Interest $ 3,682

How Does it work? : 

How Does it work? 20% of Annual Interest $ 3682.07 Divide by 12 months in a year 1/12 = ? Monthly benefit to buyer $306.83 A first time buyer would receive a monthly tax benefit of $306.83 dollars a month to offset the cost of the home.

How Does it work? : 

How Does it work? Payment W/O MCC Payment with MCC This is the qualifying payment Guild can use to qualify the borrower!

Slide 6: 

Maximum DU Loan Approval without the MCC. = $340,000.00

Slide 7: 

Maximum DU Loan Approval With …….the MCC! = $395,000.00 That’s an increase of * $55,000.00!

Slide 8: 

Based on the MCC the payment or PITI reduced by the amount of $321.24

FHA loan @5% and sales price of 375K@ Total potential saving up to. : 

FHA loan @5% and sales price of 375K@ Total potential saving up to. 20% of 394,335.86 = $78,867.17 $78,867.17

Slide 10: 

Entitlement Review 206-455-0995

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