MCC Example
Here is how the Darrell Smurd family can benefit from
purchasing a home under the Mortgage Credit Certificate
Program. (Note: Figures here are rounded for simplification of Example)
Family Income:
Loan Amount:
Interest Rate:
$6,250 per month
$350,000
6.50%
(1)
Determine the First Year Interest Payment
$350,000 x .065 = $22,750
(Loan Amount x Interest Rate)
(2)
Determine the Annual Mortgage Credit
$22,750 x .20 = $4,550
(First Year Interest Payment x 20% MCC Credit rate)
(3)
Determine Monthly Mortgage Credit
$4,550 ÷ 12 = $380
(Annual Mortgage Credit ÷ 12 months)
Affordable Housing Applications, Inc.
Ahahousing.com
FOUR STEPS TO TAX SAVINGS
The Smurd family income is $6,250 per month, earned
through Darrell’s employment. This illustration
shows how Darrell’s take-home pay will be
increased with the help of a mortgage credit equal
to about $380 per month.
4)
With MCC:
$6,250 mo. earnings
- 620 withheld for taxes
$5,630 take home pay
Annual Tax Debt
$7,450
3)
2)
1)
Without
$6,250
-1,000
$5,250
MCC
mo. earnings
withheld for taxes
take home pay
Tax Credit Received
Under MCC Program:
$4,550 per year
Or $380 per month
New Estimate Annual Taxes
$12,000 Annual Tax Debt
-4,550 MCC Annual Credit
$7,450 New Annual Tax Debt
Withheld
$7,450
4. With MCC, Darrell earns $6,250/mo
and nets $5,630/mo
because:
Now only $7,450/yr or $620/mo. is
withheld and owed in taxes.
($7,450 ÷ 12 = $620/mo.)
2-3. Darrell buys home and receives
MCC giving him a tax credit of:
$4,500/yr or $ 380/mo.
Darrell’s tax debt is reduced to:
$7,450 /yr or $620/mo.
Darrell instructs employer to
withhold only $620/mo. In federal
taxes from his pay.
1. Without MCC:
Darrell earns $6,250/mo.
and nets $5,250/mo
because :
Annual Tax Debt
$12,000
Withheld
$12,000
($1,000 x 12)
$12,000/yr or $1000/mo is
withheld and owed in taxes
Affordable Housing Applications, Inc.
8130 La Mesa Blvd #806
La Mesa, California 91941
Phone (619) 469-0270
On the web: www.ahahousing.com
City of Oceanside
The Mortgage Credit Certificate (MCC) Program
Fact Sheet
August 2013
Web Site: www.ahahousing.com
What Is a MCC?
The MCC is a Federal Income Tax Credit program. An
MCC provides a double bonus. It increases the loan
amount you qualify for and it increases your take-home
pay. The MCC entitles you to take a federal income tax
credit of twenty percent (20%) of the annual interest
you pay on your home mortgage. Because the MCC
reduces your federal income taxes and increases your
net earnings, it is a great help in qualifying for your first
home mortgage. But it doesn’t stop there. The MCC is
registered with the IRS, and it continues to decrease
your federal income taxes each year for as long as you
live in your home.
How to Qualify
 Your household income and the purchase price
must not exceed the limits shown below.
 You must not have owned a principal residence in
the last three years.
 You must occupy the home.
 You must apply for the MCC through a participating
Lender, and pay a non-refundable MCC
application fee of .002 X the total amount financed.
(Example: 1st and 2nd loan combination of $250,000
loan X .002 = $500). Payable to the “AHA, Inc”.
 You must purchase a single-family detached home,
condominium or townhouse within the program
boundaries.
MCC Program Limits
Max. Income:
Non-Targeted
1 or 2 persons: $72,300
3 + persons:
$83,145
Max. Purchase Price:
Resale:
$643,847
New:
$643,847
Duplex:
$724,972
Duplex must be at least 5 years old.
Targeted
$86,760
$101,220
$786,924
$786,924
Program Boundaries
Throughout the City of Oceanside.
Availability of Funds
See Website listed below and click on the “Funding/
News” page to find out the current status of funding.
Website: www.ahahousing.com
How to Apply
 Choose a Lender enrolled in the MCC program to
pre-qualify you for a loan and an MCC. View our
website for a lender list.
 After finding a property and having the seller accept
your offer, escrow will be opened.
 You may only apply for an MCC while escrow
Is open.
 Read and sign your MCC application, which the
lender prepares and sends to the MCC program.
 Once your MCC application is approved the
program office issues your lender an MCC
Commitment and Closing Affidavit.
 Sign the Closing Affidavit with the other closing
documents at the end of escrow.
 Look for your MCC document in the mail within 30
days after escrow closing.
Mortgage Financing You Can Use With MCCs
Includes FHA, VA, or Conventional loans; 100%
financing OK, and MCC credit applies to both loans.
Prohibited loans or terms: CalHFA 1st, Cal-Vet, ARM
- Rate change within first 3 years, Interest-only for less
than 5 years, and back-end ratio over 45% (some
exceptions allowed by administrator).
Targeted Census Tracts
In certain low income census tracts MCC applicants do
not have to be first-time homebuyers and the income
and purchase price restrictions are relaxed. See our
web site for a list of Targeted Areas
Recapture Tax
If you sell your home within nine years you may have to
pay a recapture tax. Several conditions may exempt
you from the recapture tax. Call the MCC office or see
your lender for more details.
Note: the MCC can be combined with the City of
Oceanside Downpayment Assistance program which is
administered by the City.
Administrator
Affordable Housing Applications, dba Aha Housing,
administers the MCC Program for the City of
Oceanside. Please see website for contact info.
Please make checks payable to “AHA, INC.”
The Difference Between a Tax Credit and a Deduction
Here is how the MCC tax credit helps much more than a simple mortgage deduction.
Assume a taxpayer named Tom with a $60,000 annual income buys a home financed
for $300,000 at a 5.5% interest rate. Interest paid the first year is approximately
$16,500. An MCC tax credit of 20% of interest paid would equal $3,300 (20% x
$16,500 = $3,300).
With MCC
Annual Income
Personal Exemption
Interest Deduction
Taxable Earnings
Tax from Table
MCC Credit
Tom’s Total Income Tax
$60,000
-3,100
-13,200
$43,700
$7,656
-3,300
$4,356
Without MCC
$60,000
-3,100
-16,500
$40,400
$6,831
0 $6,831
Tom owes $2,475 less with an MCC than without one ($6,831-$4,356 =$2,475). He can
subtract the $3,300 from his total federal income tax liability, receiving a dollar for dollar
savings. (A tax deduction is subtracted from the adjusted gross income before federal
income taxes are computed. Therefore, with a deduction, only a percentage of the amount
deducted is realized in savings).
This illustration is simplified for example purposes only.
considerations may impact a person’s actual tax debt.
Actual figures may vary, and many other
City of Oceanside Targeted Census Tracts
2000-2010
There are three targeted census tracts in Oceanside—182,184,and 186.03.
The boundaries written below are meant as a rough approximation of the actual
boundaries. To determine the census tract of a particular address, go to
‘American Fact Finder’ web site.
Census Tract #182:
West: Train tracks
North: Michigan Avenue
East: I-5
South: Oceanside Boulevard
Census Tract #184
West: Train Tracks
North: San Luis Rey River
East: I-5
South: Michigan Avenue
Census
West:
North:
East:
South:
Tract # 186.03
I-5
San Ruis Rey River
Fousatt Road
Mission Avenue
MCC Program Office
Welcome MCC Applicant!
Congratulations and welcome to the application phase of the MCC program! We, the staff of the
Mortgage Credit Certificate program, will be processing your application, and are committed to
providing the best service possible.
You are applying for a federal tax credit which will help you purchase your first home and save
you many thousands of dollars (over the coming years) in federal income taxes. To help you
understand the MCC, we have put together this package which your lender is to give you when you
apply. Please check to see if it is complete. It should contain:
1. This 3-page Welcome Applicant letter;
2. Recapture tax summary;
3. MCC Example (a 2-page illustration)
OVERVIEW
HOW DOES THE MCC WORK?
Your MCC will entitle you to take a federal income tax credit each year equal to twenty percent
(20%) of the mortgage interest you paid. Please see the enclosed chart entitled "MCC EXAMPLE".
This illustrates how your MCC helps you qualify for your loan, and how it lowers your federal income
taxes. By arranging for your employer to withhold less taxes from your pay, you will then realize an
increase in your take home pay which will help you make your mortgage payment. The MCC is a
direct tax credit which you will take in addition to the mortgage interest deduction available to all
home owners who make mortgage payments. You will only use the MCC with your federal taxes;
state taxes are not affected by it.
HOW LONG DOES THE MCC LAST?
As long as you continue to occupy the property and keep the original financing, you can continue to
take your MCC tax credit. (An increase in your income after the close of escrow does not affect
your eligibility to take the credit). In a case where the MCC credit exceeds your tax liability for a
particular year, you can "roll over" that credit for up to three years. Instructions are on the tax
form (#8396) you will use to take the credit. The following events will cause your MCC to become
void: 1) sale or transfer of the property (except transfer to spouse); 2) your moving from the
property; 3) refinancing of the present mortgage without receiving a Re-Issued MCC, (you can
refinance your present mortgage as long as you apply and get a Re-Issued MCC after each and
every refinancing that you complete). If any of these occur, you should notify the Program. Please
see next page regarding refinancing your loan.
Page 1 of 3
WHO CAN TAKE THE MCC TAX CREDIT?
Only home purchasers who are issued an MCC from an authorized issuing agency may take the
credit. The Program and the lender who originates your loan will send notification to the IRS that
you are entitled to take the credit. If you purchase the property with another taxpayer and you
file separate returns, you may share the total amount of the credit in the same proportions that
you share interest in the home (but the total must never exceed 20% of the interest paid that
year).
APPLICATION FEE
You have paid a NON REFUNDABLE fee to apply for an MCC . The check should be made payable to
“AHA, Inc.” If you are eligible, an MCC will be reserved for you for 120 days for the home and loan
amount you now seek. It is possible to transfer the MCC to another eligible property during escrow
under certain conditions.
ELIGIBILITY
Your eligibility will be based on: your gross annual household income which is derived from your
current monthly income; your first-time home buyer status, (unless you are purchasing in a
targeted census tract); and the purchase price of the home. In all cases the home must be in the
geographical limits of the Program. After the close of escrow, an increase in your family income
will not affect your eligibility to continue to take the credit.
FIRST-TIME HOMEBUYER
For purposes of the MCC program, a first-time homebuyer is someone who has not owned a principal
residence (a home in which they resided) during the three year period immediately prior to applying
for the MCC. We ask to see copies of your tax returns to ensure that you did not take a mortgage
interest deduction during that period. You will sign an affidavit claiming first-time buyer status. If
you are buying a home in a targeted census tract, the requirement of first time homebuyer status
is waived.
CANCELLATION
The Program may cancel the MCC if you cease to be eligible, or if the Commitment deadline passes
without escrow closing and without a written request from your lender for an extension. The lender
can not voluntarily cancel your application for an MCC without your permission. If your deal falls
through, please contact the Program to let us know if you plan to find another property to use the
Commitment with, or if you are willing to help another family by giving up the MCC Commitment.
THE (IRS) INTERNAL REVENUE SERVICE
This is an IRS program and any documentation you sign during the application process is subject to
review by the IRS. It is therefore extremely important that you take the time necessary to read
the documents you sign, and to submit only true, accurate, and complete information regarding your
taxes and your eligibility. Don't be rushed into signing any of the documents. Feel free to ask what
they mean. We will gladly answer any questions you have about the Program. Please do not take
advice about filling out your W-4 form from your lender or Realtor; see a licensed tax expert to
plan your taxes.
Page 2 of 3
YOUR LENDER
Your MCC is transferable if you find it necessary during escrow to switch to another participating
lender. The Program has no part in the decision of your lender to approve your loan.
QUALITY OF SERVICE
We are very interested in the quality of service you receive related to your MCC. Please let us
know if you believe your lender or any other real estate professional misrepresented the MCC
Program to you in any way.
RECAPTURE TAX
If you sell or transfer your home within nine years you may be subject to a recapture tax. This
package includes summary information on the recapture tax. For an example of the recapture tax
forms the Program uses please see our website at ahahousing.com. If you have questions which your
lender is not able to answer please feel free to call us. It is a rather complicated tax; we will be
happy to try to answer your general questions. For information about your specific tax situation you
should seek the help of a tax expert.
REFINANCING
If you refinance your mortgage, you will lose the MCC, unless you apply through the RMCC Program
to have your MCC re-issued to match the new loan conditions. The RMCC application is on our
website at ahahousing.com. Or call us for more information. Refinancing will not trigger the
recapture tax. Only transfer of the property can trigger the recapture tax.
COMMITMENT
After submitting your MCC application package, your lender will receive an MCC Commitment
indicating program approval. It will be in effect for 120 days. If at the expiration of the 120 days
the lender has not submitted the required documentation, the original Commitment will expire and
the lender will be charged a fine of $150 to extend or cancel the application. This fine is not to be
passed on to you.
WHAT HAPPENS NEXT?
You will execute various documents. Be sure to sign and date them in blue ink during escrow. At the
close of escrow you will sign a Closing Affidavit stating that nothing happened during escrow to
make you ineligible for the MCC. After escrow closing, and after we have received the closing
documentation from your lender, we will send you a package containing your Mortgage Credit
Certificate and other documents including a detailed Recapture Tax Notice, and a tax memorandum
explaining how to use your MCC tax credit.
FOR INFORMATION CALL:
(619) 469-2002
Page 3 of 3
MCC RECAPTURE TAX SUMMARY
If you purchase a home under the MCC Program, you may be subject to a recapture tax
if you sell the home within nine years. The tax, if any, will always be the lesser of:
1)
2)
Half the profit
or
The Tax
The tax is based on a complicated formula that takes into consideration:
1)
The amount of the original home mortgage
2)
The income guideline you qualified under
3)
The number of years you stay in the home before selling
4)
The increase in your income between purchase and sale
Generally speaking, you will owe no tax if:
1) It has been more than 9 years since you bought the home
2) Your resale is due to death or divorce
3) Your family income does not increase “substantially”. This means:
You owe no recapture tax if, in the year you sell the home, your Adjusted
income (after all deductions including costs of sale) does not exceed the
Maximum Gross Annual Income you qualified under to enter the Program,
PLUS 5% (above that Maximum) added on for each year since you bought
the home.
The above are broad, summary statements about a complicated tax. There is no way to
know what your financial situation will be in the future, and this is not offered as tax
advice. The MCC Program has no direct experience with the recapture tax, as we are
not affiliated with the IRS.
History Note: The MCC tax credit program was funded by Congress in the 1980’s, then
eliminated in the early ‘90’s because it was thought that the nation could not afford the
loss in taxes. The Program was brought back by popular demand with one new wrinkle—
the recapture tax. Congress figured that if an MCC-holder’s income increased
substantially, and a gain was made on the sale of the home, a modest tax might enable
the MCC Program to stay funded indefinitely.
For more detailed information on the recapture tax, please see Recapture Tax Notice
# 2 on the ahahousing.com web site.
County MCC Program
Regional Processing Center
Page: 1 of 3
SAMPLE
NOTICE #2
MCC No. 00-00-000
NOTICE TO MORTGAGOR
INFORMATION REGARDING POTENTIAL RECAPTURE TAX
Because you have received a Single Family Bond Loan Mortgage Credit Certificate, pursuant to
Section 143(m) of the Internal Revenue Code of 1986 (the "Code"), you may, at the time you sell the
residence for which you received a Single Family Bond Loan Mortgage Credit Certificate, be subject
to a special "recapture tax" for federal income tax purposes. You should consult your tax advisor at
the time you sell the residence to determine the amount, if any, of such "recapture tax." The following
information will assist you in determining the amount, if any of "recapture tax":
Name of Mortgagor(s):
SAMPLE - Your Name Here
Date of Home Mortgage Closing:
Date that Escrow Closed
Location of Home:
Property Address
Principal amount of Mortgage at Closing:
Your Mortgage Loan Amount
ARE YOU SUBJECT TO THE RECAPTURE TAX?
You will be subject to a special recapture tax for the tax year in which you sell or transfer your home
only if you meet all four of the following conditions:
1. You sell or transfer the home on or before (9 years from the date of Mortgage Closing listed above),
and
2. You sell or transfer the home at a gain (determined by the IRS form on gain from sale of a singlefamily residence, whether or not you decide to rollover the gain), and
3. The Home is not:
a. transferred as a result of death,
b. transferred to a former spouse as a result of divorce (in which case the former spouse is treated
as if he or she has been the owner from the date of Mortgage Closing), or
c. rebuilt from casualty insurance proceeds within two years after its destruction; and
4. Your taxable household income for the year in which you sell your home exceeds the following
Income Threshold.
TABLE I
INCOME THRESHOLD
Number of members of the Mortgagor's
Household at the time of resale of the Home
1 or 2 persons:
3 or more persons:
As of (date),
Current Threshold Sale before:
$68,500
$78,775
Within 1 year after Mortgage Closing:
1 or more years, but less than 2 years after Mortgage Closing:
2 or more years, but less than 3 years after Mortgage Closing:
3 or more years, but less than 4 years after Mortgage Closing:
4 or more years, but less than 5 years after Mortgage Closing:
5 or more years, but less than 6 years after Mortgage Closing:
6 or more years, but less than 7 years after Mortgage Closing:
7 or more years, but less than 8 years after Mortgage Closing:
8 or more years, but less than 9 years after Mortgage Closing:
$71,925
$75,521
$79,297
$83,262
$87,425
$91,797
$96,386
$101,206
$106,266
$82,714
$86,849
$91,192
$95,752
$100,539
$105,566
$110,844
$116,387
$122,206
Your taxable income is the "adjusted gross income" from your tax return for the year in which you
sell your home plus any tax exempt bond interest income you may have. (However, do not include any
gain from the sale of the home itself in determining whether you are above the Income Threshold listed
above.)
Page 2 of 3
HOW MUCH RECAPTURE TAX WOULD YOU OWE?
If you meet all four of the above conditions, then you will be subject to the recapture tax.
The amount of the recapture tax is the lesser of:
-
the maximum potential recapture tax (calculated under Steps 1 and 2 below),
One-half of your gain from the sale of the home (see page 3).
The recapture tax will never exceed .0625 (6¼%) of the principal loan amount at origination. Several
factors can significantly decrease that maximum, as illustrated in the steps below. For the formula on
which these steps are based, see "*Note" at the end of this section.
Maximum Potential Recapture Tax
The maximum potential recapture tax (MPRT) you will owe is calculated in two steps:
STEP 1
See the line on the left which best describes the date of transfer of the home. The corresponding line
on the right gives applicable maximum potential recapture tax (MPRT).
TABLE II
MPRT (MAXIMUM POTENTIAL RECAPTURE TAX)
Date of Sale or Transfer of Home
(or Prepayment of Mortgage if Earlier)
Within 1 year after Mortgage Closing:
1 or more years, but less than 2 years after Mortgage Closing:
2 or more years, but less than 3 years after Mortgage Closing:
3 or more years, but less than 4 years after Mortgage Closing:
4 or more years, but less than 5 years after Mortgage Closing:
5 or more years, but less than 6 years after Mortgage Closing:
6 or more years, but less than 7 years after Mortgage Closing:
7 or more years, but less than 8 years after Mortgage Closing:
8 or more years, but less than 9 years after Mortgage Closing:
Percentage of
Original Mortgage
1.25 %
2.50 %
3.75 %
5.00 %
6.25 %
5.00 %
3.75 %
2.50 %
1.25 %
Dollar Amount
Based on Original
Mortgage of:
Example: $100,000
$1,250
$2,500
$3,750
$5,000
$6,250
$5,000
$3,750
$2,500
$1,250
Example: If the home was sold between 1 and 2 years after Mortgage Closing, use 2.5% of original
mortgage. Thus, if original mortgage was $100,000, the maximum potential recapture tax would be
$2,500 ($100,000 x 2.5%).
STEP 2
Possible Reduction of Recapture Tax
Determine whether your taxable income, in the year in which you sell the home, exceeds the Income
Threshold shown in Table I, and if it does, whether such excess is more or less than $5,000 above the
Income Threshold shown in Table I.
Example: If you have a 2 person household at the time of sale and your income is $53,000, and the
Income Threshold in Table I for that year is $50,000, your "excess income" is $3,000:
Actual Household Income
$53,000
- Income Limit (From Table I)
$50,000
Excess Income above Income Threshold $ 3,000
You will be in one of three situations:
(i) Your income does not exceed the Income Threshold:
You are not subject to any recapture tax at all.
(ii) Your income is more than $5,000 above the Income Threshold:
There is no reduction in the maximum potential recapture tax calculated in Step 1.
(iii) Your income is less than $5,000 above the Income Threshold:
Your maximum potential recapture tax will be reduced pro rata, as shown below:
Page 3 of 3
If your excess income is less than $5,000 above the Income Threshold, the revised maximum potential
recapture tax would be:
Revised Maximum
=
Potential Recapture Tax
Excess Income (From Step 2)
$5,000
Example: Actual Income - Income Threshold
$5,000
= $3,000
$5,000
X
MPRT (from Table II)
= 60% X 2,500 MPRT (from Table II)
= $1,500 Revised Maximum Potential Recapture Tax
Thus, the maximum potential recapture tax of $2,500 determined in Step 1 would be reduced to $1,500
due to the calculation in Step 2.
*Note: These instructions are meant to provide a step by step process for figuring a potential
recapture tax. The legislative formula on which these steps are based is:
Y
PRT = 6.25% X P X H X
M - (IL X 1.05
5,000
)
M = mortgagor's adjusted gross income at time of sale
IL = original income limit
Y = number of complete years mortgagor owned home
PRT = Potential Recapture Tax
P = original principal amount
H = holding period percentage
Y
*Note: If " M - (IL X 1.05
) " is greater than $5,000, that amount is treated as equal to $5,000.
Gain on Sale of Home:
Finally, compare the revised maximum potential recapture tax (from Step 2) to one-half of your actual
gain from the sale of the home. (Your "Gain" is generally defined by the IRS to be the resale price
less: (i) sale costs, (ii) your original purchase price, and (iii) your cost of capital improvements. This is
true whether or not you roll over the gain.) You pay whichever is less.
As in the example:
Revised Maximum Potential Recapture Tax =
Gain from Sale of Home
Sales Price of Home
- Closing Costs
- Basis in Home
Gain is:
X ½
$150,000
$8,000
$142,000
$130,000
$1,500
($120,000 initial price plus
$10,000 cost of improvements)
$12,000
$6,000
Answer: The Lesser of $1,500 and $6,000 is $1,500; so $1,500 is the Recapture Tax.
Other Factors Affecting the Recapture Tax
All references to the "sale" or "transfer" of the home include any change in your interest in the Home,
whether by sale, exchange, gift or some other disposition.
If any person other than you or your spouse is also a mortgagor, each person's Recapture Tax will be
determined separately in accordance with his or her interest in the home.
The Recapture Tax may also be somewhat reduced if you prepay the mortgage in whole (e.g.
refinance) and do not sell the home until a subsequent year.
Mortgage Credit Certificate (MCC) Program
Lenders Facts
Lender Eligibility
To be eligible to submit an MCC application to AHA Housing, the individual submitting the application must
be on the list posted on the web site called the Eligible Lender List. In addition the individual’s lending
company must be enrolled for the current contract year.
Lender IRS Tax Form # 8329
Form # 8329 must be completed by the Lender, each January, reporting to the IRS any MCC loans they
have closed. The MCC office can help with this form.
Welcome Applicant Package
The originating lender must give each applicant for the MCC a “Welcome Applicant Packet.” It contains the
basic facts about the Program, the tax credit, and disclosures about the recapture tax.
Credit vs. Deduction
A tax credit is worth far more than a deduction. Explain to your buyer that a tax deduction reduces the gross
income, then a tax is applied. A credit actually reduces the dollar amount of the tax itself. (see “MCC
Example”) This is why the MCC can reduce the borrower’s federal income tax by thousands of dollars every
year.
MCC Longevity
The tax credit is good for the life of the financing. Moving out of the property terminates the credit. There is
no dollar cap on the amount of annual credit as long as it does not exceed the 15% or 20% annual tax
credit rate of the MCC. There is no continuing income restriction on the MCC recipient who has closed
escrow.
Buyer and the W-4
Make sure your buyer knows they must change their W-4 Withholding form at work in order to realize their
tax savings and increased take-home pay. If they fail to do that, they will probably struggle with their
mortgage payment.
Monthly MCC Credit and Qualifying
The most favorable way to use the credit in underwriting is to subtract it from the PITI for qualifying. The
least favorable way is to add it to the applicant’s monthly income. It is the underwriter’s call, based on the
“strength” of the applicant.
Important News Page
Current funding information on AHA’s MCC programs can be found at www.ahahousing.com. Click on the
Important News button to find out the funding schedules and amounts for each AHA program.
Downpayment Assistance
The Counties of San Diego and Ventura have several down payment assistance programs available to the
buyer. The City of Oceanside also offers a downpayment assistance program. For contact information on
these programs please see the document entitled “Local Downpayment Assistance Programs under each
program module. Click on the Buyer or Lender buttons.
MCC Program Handbook and Manual
Both the MCC Program Handbook and Manual are online at aha housing.com. They contain more detail
than is offered in the training. However, if the instructions on the forms are followed closely, a perfect
application can be achieved.
City of San Diego Housing Commission
If you need an MCC for a property with a zip code beginning 921.., you will need to contact the Housing
Commission for information on enrolling in their MCC program. Their web site is SDHC.net
2009
MCC INCOME TAX AFFIDAVIT
City of Oceanside MCC Program
(619) 469-2002
aha Housing
8130 La Mesa Blvd. PMB 806
La Mesa, California 91941
Phone 619.469.2002 Fax 619.469.2005
On the web: www.ahahousing.com
INCOME TAX AFFIDAVIT
To be completed only if:
1) The applicant was not required by law to file a FEDERAL income tax return for one or more of the three
prior tax years; or
2) The applicant is applying for a loan which is expected to close between January 1 and February 15 th.
Note: After February 15 th, the most recent year’s FEDERAL tax return must be completed and
submitted with the MCC application.
This affidavit is not required if the home being purchased is in a federally “targeted” census tract.
I am an Applicant for the Mortgage Credit Certificate Program, and I am a first-time homebuyer. I have not
owned a principal residence* during the last three years. I understand that the MCC program requires me to
submit copies of my federal income tax returns for that three year period, as evidence that I did not take a
property tax or mortgage interest deduction on my tax returns during that time.
I am signing this affidavit for one ofthe two reasons stated below.
CHECK ONE:
1. I hereby certify that I was not required by law to file a federal income tax return for the year(s) and
the reason(s) stated below. I am prepared to submit documentation to prove that I did not own a home
during that period.
Year(s) ____________. Reason(s): (Must be Completed)
_____ 2. I certify that the closing in connection with which I am seeking a MCC is occurring between January
1 and February 15, and that I have not yet filed my federal income tax return for the prior tax year. Regarding
my principal residence during that year, I am not entitled to claim a deduction for property taxes and/or
mortgage interest.
I acknowledge and understand that this Affidavit will be relied upon for purposes of determining my eligibility for an MCC. I acknowledge
that a material misstatement negligently made by me in connection with an application for an MCC will constitute a federal violation
punishable by a fine, and a material misstatement fraudulently made in this Affidavit or in any other statement made by me in
connection with the application for an MCC will constitute a federal violation punishable by a fine, revocation of the certificate and any
other penalty imposed by law. In addition, any material misstatement or false statement which affects my eligibility for an MCC will
result in a denial of my application for an MCC, or, if an MCC has been issued prior to the discovery of the false statement, immediate
cancellation of the MCC issued.
In addition, I hereby acknowledge and understand that any false pretense, including any false statement or representation; or the
fraudulent use of any instrument, facility, article, or other valuable thing or service pursuant to my participation in any City of Oceanside
MCC Program is punishable by imprisonment or by a fine.
_______________________
Date
_________________________________________
Signature of Applicant
_________________________________________
SocialS ecurity Number
* For purposes of prior homeownership, "principal residence" means (1) a single family home, (2) condominium or townhouse unit, (3)
stock held by a tenant-stockholder in a cooperative housing corporation (as those terms are defined in Section 26 of the Internal
Revenue Code, (4) occupancy of a unit in a multifamily building owned by the Applicant, and (5) any manufactured home (including a
mobile home as defined under federal law) which is of a type customarily used at a fixed location having a real estate loan. Principal
residence does not include recreational vehicles, campers, and other similar vehicles, mobile homes without a real estate loan attached,
or investment property which has not been occupied as a principal residence by the Applicant during the past three years.
Request for Placement on AHA Housing’s
Lender Eligibility List
AHA Housing seeks to provide the highest quality of MCC Program possible. Toward that end,
AHA maintains an eligibility list on its web site lending personnel who have taken the Internet
Lender Training for the MCC Program, and/or have submitted a successful MCC within the last
two years.
Receipt and signed confirmation (see below) of this completed request form by AHA will result
in your eligibility to submit MCC applications to AHA immediately, and your information will
be added to the web site Eligibility List. Other MCC Programs may also honor this verification
of MCC training. Please understand that your contact information may not be updated for two
years; so it is best to provide contact information that will transfer with you when/if you
change lending companies.
Please enter your contact information below in the way you would like it to appear on the
eligibility list on the AHA Housing web site. Please Print.
Today’s Date
Last Name
First Name
Company
Phone Number:
County Preference
____________________________
____________________________
____________________________
____________________________ (may not appear on web site)
____________________________ (cell phone preferable)
____________________________ (Ventura or S.D./Oceanside)
This is to certify that I have taken AHA Housing’s MCC Lender Training on the AHA web site.
My date of enrollment was__________. I paid by (please √ one) check____ @ $39.00 or by
Paypal____@ $41.95. I am aware that to maintain eligibility I must take the training annually
or submit a successful application to AHA at least once every two years, and that placement
on the list is ultimately at the discretion of the Program Administrator.
(Please sign)____________________________________(date)___________
*****
Confirmation of Eligibility
The person named above has completed AHA Housing’s MCC Lender Training; has paid by the
method and amount indicated above; and is therefore eligible to submit applications to the
MCC Program, (provided their Company is enrolled). This printed and signed confirmation will
suffice as proof of eligibility until the web site Lender Eligibility List is updated accordingly.
___________________________________________________________________
Kathy Stone, Program Administrator
date
Please either email this completed form to [email protected]
or Fax it to 619-469-2005
We will scan/email your signed request to you at
(Your email address here)______________________________________________
aha Housing
City of Oceanside (MCC)
Mortgage Credit Certificate
Program (619) 469-2002
c/o The UPS Store
7918 El Cajon Blvd. Ste. “N”
Box # 289
La Mesa, California 91942
MCC Application Checklist
August 2013
√Note: Person completing Application must be on Eligible Lender List for this MCC Program
Buyer Last Name:
Originating Lending Company:
Lending Co. Responsible for Closing Affidavit
Name of signatory below:
(Print)
_________________________________________
_________________________________________
_________________________________________
_________________________________________
√I certify that: 1) I have reviewed this application for accuracy and completeness; 2) The related financing does not use any of
the prohibited financing stated below. 3) The checked items are included in proper order.
_________________________________________________________________________________
(Signature)
(Phone No.)
(Fax No.)
your e-mail :__________________________________________________(We will email you a blue-ink MCC approval)
This MCC application package contains:
_____ Application and Affidavit Page One,
with NO BLANKS
_____ Application and Affidavit Page Two
with Dates and Signatures
_____ Application and Affidavit Page Three
_____ Application and Affidavit Page Four
_____ Check for .002 x Total MCC-related Loan(s).
Make payable to “AHA Inc.” Attach with clip - to
a blank page directly behind the “Application Checklist”.
√ Prohibited Financing
Back end ratio exceeding 45 % unless
already waived by Administrator.
Lender Rep. initial here: ____________
I certify that the financing attached to this
MCC application does not have any of the
prohibited characteristics above.
_____ Copy of Standard Underwriting Transmittal Summary
(To document back end ratio does not exceed max. allowed)
_____ Income Summary Worksheet
Two (2) Current paystubs –- for each applicant
Current (not averaged) base monthly salary
Calculator tape explaining your calculation and how often paid
VOE for each applicant - if needed to prove eligibility. (See Income Worksheet)
If “Self Employed” - signed Current P&L statement
Declaration of No Income – if applicable, (signed by an adult who earns no income)
_____ Recapture Tax Notice #1
_____ Seller Affidavit: All Blanks must be completed by Lender prior to signatures.
Check the one that applies:
Original document is enclosed, signed by seller.
A fax copy of original document, signed by seller, is enclosed.
Commitment will not be issued until the MCC program receives the original signed document.
_____ Declaration of Non-Occupying Co-Signer if applicable.
_____ Purchase Contract –Legible copy: First and Last pages ONLY plus any Price Change Addenda
_____ Tax Returns for each applicant: Three (3) most recent (complete) years
Signed - in blue ink by taxpayer(s)
Dated - with current date in blue ink by taxpayer(s)
_____ Broker’s Certification, if Funding Lender is not enrolled.
_____ Income Tax Affidavit - (if applicable)
(page 1 of 4)
MCC APPLICATION AND AFFIDAVIT – Page 1
City of Oceanside MCC Program
c/o The UPS Store
7918 El Cajon Blvd. Ste. “N”
Box # 289
La Mesa, CA 91942
Today’s Date:
Estimated date of closing:__________________________
Originating Company Name:
Lender Preparer of Street:
Application:
City:
State:
Contact:
Phone: (
Zip:
)
Fax: (
)
* Enter below the company who will be responsible for the MCC Closing Affidavit. If it is the originating Lender
(a Broker) write “same” and provide a completed Broker’s Certification form (found in “Optional Forms”).
Enrolled *
Funding
Lender:
Company Name:
Street:
City:
State:
Zip:
Complete
Property
Address:
City:
Seller(s):
Census Tract #:
1
Property Data – Check one item in each column:
2
Purchase Price:
Nontargeted
Targeted
Number of BRs:
Previously Occupied
New
1st Mtg. Loan Amount:
nd
2a
Zip:
1st Mtg. Interest Rate
nd
2 Mtg.
Loan Amt:
Detached
Attached
2 Mtg.
1st Yr Interest Rate:
Your favorite color:
(optional)
Please include information below for each Applicant. See page 2, Sec III, for the definition of Applicant. If there are more than two Applicants
for this purchase, please complete and attach additional page 1 application sheets. Note: If married, both spouses must be applicants.
3
APPLICANT #1
APPLICANT #2
4
Persons in
Household:
Dependent(s) or other household
members – not spouses:
Age
Name
Last Name:
First Name:
Social Security #:
Street:
Total Gross Annual Household
Income:
City:
Zip
Gross Annual Income:
Occupation:
FHA
CONVENTIONAL
Employer Name:
Yes
___
___
___
___
___
For Statistical
Purposes
Only: (Enter
Age and Check
all that apply)
Mortgage Information
(check all that apply)
VA
100% Financing
No
___
___
___
___
___
Female
Male
Age:
Married?
To Be On Title?
To Be On Note?
Will Occupy?
Verified First Time
Homebuyer?
____Asian
____Black
___Hispanic
____White
____Other
Yes
___
___
___
___
___
No
___
___
___
___
___
Female
Male
Age:
ARM?
Married?
To Be On Title?
To Be On Note?
Will Occupy?
Verified First Time
Homebuyer?
____Asian
____Black
___Hispanic
____White
____Other
Yes
No
If Yes, number of yrs First is fixed. _________
Back end ratio? __________ %
Downpayment Assistance?
Yes
No
If Yes, Source (City, County, State, Fed., etc.):
For Each Applicant:
I have reviewed this completed Page 1 and
agree with the information con tained on it.
Initial ______________ Date:____________
Initial ______________ Date:____________
MCC APPLICATION AND AFFIDAVIT – Page 2
(page 2 of 4)
City of Oceanside MCC Program
c/o The UPS Store
7918 El Cajon Blvd. Ste. “N”
Box # 289
La Mesa, CA 91942
(619) 469-2002
Aug. 2013
Section II
TO THE HOMEBUYER:
Hello! Thank you for your application to the City of Oceanside Mortgage Credit Certificate Program. Completion of the application
process will result in your receiving a special tax credit equal to 20% of the mortgage interest you pay each year on your home. It Is most
important that you take time to read and sign each page of this application before your lender forwards it to our office. You will be certifying
that you understand the MCC Program eligibility guidelines, and believe that you and the purchase price of your residence meet those
guidelines. Your lender will also give you an Applicant Information Package which should answer most of your questions about the
program. If you have any additional questions, please feel free to phone the MCC Program office at (619) 469-2002.
By signing this document you will be certifying that (1) You have made an accurate representation of your household composition; (2) You
are able to verify your first time home buyer status (unless purchasing in a targeted census tract, in which case verification Is
unnecessary); (3) You intend to move in within 60 days of loan closing and occupy the property as your principal residence; (4) If the
property is newly constructed, it will not be occupied prior to loan closing; (5) You are receiving a first (not an existing) mortgage; (6) You
have provided complete and accurate information about your gross annual household income; (7) You have not made any side agreement
with the seller which would misrepresent the purchase price; (8) Your first loan is not financed with bond proceeds; (9) No one related to
you has an interest as a creditor on the Mortgage Loan; (10) You understand that the MCC is not transferable; and (11) You are applying for
the Mortgage Loan through a lender of your choice.
ABOUT THE INCOME REQUIREMENT:
See item 4, on page one. The answer on that line must represent the current gross annual income of your household, and must not
exceed the program income limits. Find the applicable limit below, based on your household size, and on whether the property you are
purchasing is in a federally targeted census tract.
Non-targeted Census Tract
1-2 person household: $72,300
3+ person household: $83,145
Targeted Census Tract
1-2 person household: $86,760
3+ person household: $101,220
Income is "annualized", meaning that total current monthly income is multiplied by twelve for a total projected annual amount. Income
includes all of the following: monthly gross pay; overtime; part- time employment; bonuses; dividends; interest; royalties; pensions;
Veterans compensation; net rental income; alimony; child support; public assistance; sick pay; social security benefits; unemployment
compensation; and income derived from trusts, business activities or investments. Income limits only apply during the escrow process;
they become irrelevant after the loan closes.
ABOUT THE PURCHASE PRICE REQUIREMENT:
See item 2, on page one. The answer on that line must represent the purchase price that you and the Seller have agreed on, and must not
exceed the program purchase price limits. Find the applicable limit below, based on whether the property you are purchasing is new or
previously occupied; and on whether it is in a federally targeted census tract.
Non-targeted Census Tract
Previously occupied: $643,847
New:
$643,847
Targeted Census Tract
Previously occupied: $786,924
New:
$786,924
The purchase price means the cost of acquiring the residence, excluding usual and reasonable settlement or closing costs. If the buyer
agrees to pay a cost usually paid by the seller, that amount must be included in the figure representing the purchase price in item 2, on
page one.
MCC AFFIDAVIT
Section III
An MCC Applicant is anyone who will go on title and/or who will be liable on the mortgage and occupy the residence. Each Applicant must
make the following certifications.
I, the undersigned, as part of my application for a mortgage credit certificate ("MCC") from the City of Oceanside Mortgage Credit
Certificate Program (the "Program"), and in connection with a purchase of a single family home (the "Residence") and an application for a
mortgage loan (the "Mortgage Loan") from a lender (the "Lender”) of my choosing, do hereby state that I have carefully reviewed this
document I understand and agree with the answers on Page One, and do furthermore certify the following:
1. I understand and agree that the answers given for items 3, page one, represent those people who I expect to initially share occupancy
of the Residence with me. I understand that my spouse, whether on title or not, is an Applicant for the Program and must sign this
Application.
2. I understand and agree that an "X" placed in the "Non-targeted" category, item 1, page one, means that I certify that l am
purchasing a home in a non-targeted census tract and am therefore a first time home buyer, who has not had an ownership
interest in a principal residence within the three years immediately preceding the date of this application, and I do not and
will not have an ownership interest in a principal residence prior to the date of loan closing. A principal residence includes
a single family residence, a condominium, share in a housing cooperative, any manufactured home or occupancy in a
multifamily residence owned by me. An ownership interest means ownership by any means, whether outright or partial,
including property subject to mortgage or other security interest; it also includes a fee simple ownership interest, a joint
ownership interest by joint tenancy in common, or tenancy by the entirety, or a life estate interest. I further certify that I will
submit true and complete copies of my actual signed federal tax returns for the preceding three tax years, or such other
written verification that is acceptable to the MCC Program to verify first-time homebuyer status.
For Each Applicant:
I have reviewed Page 2.
Initial: ______________
Date: ______________
Initial: ______________
Date: ______________
MCC APPLICATION AND AFFIDAVIT - Page 3
City of Oceanside MCC Program
c/o The UPS Store
7918 El Cajon Blvd. Ste. “N”
Box # 289
La Mesa, CA 91942
(619) 469-2002
(page 3 of 4)
Aug, 2013
I understand and agree that an "X" placed in the "Targeted" category, item 1, page one, means that I certify that I am purchasing a home
in a federally targeted census tract, and that I am therefore not required to be a first time home buyer, nor am I required to provide the
MCC Program with three prior years federal tax returns.
3. I certify that the Residence will be occupied and used as my principal place of residence within sixty (60) days of the date of Mortgage
Loan Closing. I certify that the Residence will not be used as an investment property, vacation home, or recreational home and that not
more than 15% of the area of the residence will be used in a trade or business. I certify that l will notify the Program in writing if the
Residence ceases to be my principal residence.
4. If the loan application is for a loan on a newly constructed home I certify that the Residence has not and will not be occupied prior to
loan commitment.
5. I certify that the Mortgage Loan is a first mortgage, not a replacement for an existing mortgage.
6. I certify that the answer to item 4, page one, represents my total household gross annual income, and does not exceed the income
limits, as explained in Section II above.
7. I certify that the answer to item 2, page one, represents the total purchase price of the Residence, and does not exceed the purchase
price limits, as explained in Section II above. I further certify that no side deal or agreement, either written or verbal, is presently
contemplated for the completion of or addition to this residence unless the estimated cost of such completion and/or addendum is
included in the purchase price.
8. I certify that no portion of the financing of the acquisition of the Residence is or will be provided from the proceeds of a qualified
mortgage bond or a qualified Veteran's mortgage bond. No person related tome has, or is expected to have, an interest as a creditor in
the Mortgage Loan being acquired for the Residence.
9. I understand and agree that if the MCC is issued to me, it may not be transferred.
10. I understand and agree that I may seek financing from any Lender of my choosing, and that I am in no way prohibited from seeking
financing from any potential Lender, so long as The Lender executes and complies with the terms of the Lender Participation Agreement.
CERTIFICATION OF THE APPLICANT
I acknowledge and understand that this Affidavit, as completed above, will be relied on for determining my eligibility for an MCC. I
acknowledge that a material misstatement negligently made by me in This affidavit or in any other connection with my application for an
MCC will constitute a federal violation punishable by a fine and possible criminal penalties imposed by law, and will result in the
cancellation or revocation of the Certificate. I acknowledge that any false pretense, statement, or misrepresentation or the fraudulent use
of any instrument, facility, article, or other valuable thing or service pursuant to my participation in the MCC Program is punishable by
Imprisonment or by a fine.
Signature of Applicant #1
Date
Signature of Applicant #2
Date
CERTIFICATION OF THE LENDER
Based upon reasonable investigation, the Lender has no reason to believe that either the Applicant or the Seller of the Residence has
made any negligent or fraudulent material misstatements in connection with the Applicants application for an MCC, and submits the
completed information above as accurate and true to the best of the lenders knowledge.
Name and Title of Lender Representative
Date
Signature of Lender Representative
Date
MCC APPLICATION AND AFFIDAVIT – Page 4
City of Oceanside MCC Program
c/o The UPS Store
7918 El Cajon Blvd. Ste. “N”
Box # 289
La Mesa, CA 91942
(619) 469-2002
(page 4 of 4)
Aug. 2013
The following items are required to be provided by the lender on each MCC application. Because you will be
submitting the application prior to funding it will be necessary for you to estimate certain items here as accurately as
possible.
Buyer (s) Name:__________________________________________________________
Leave no blanks. If the question is not applicable, enter “N/A”.
Please provide the following:
1. Downpayment amount paid by purchaser (from own funds, excluding any gifts):
$
__________________________
2. Closing costs paid by purchaser (from own funds):
$
__________________________
3. Term of the first mortgage:
_____________________ months
4. Monthly mortgage insurance payment:
$
___________________________
5. Monthly homeowner association dues:
$
__________ _________________
6. For purchasers receiving assistance from any public program:
a. Downpayment assistance amount provided by a public program:
$
______________________________________
b. Closing cost assistance amount provided by a public program:
$
______________________________________
c. Interest rate, if any, of the public assistance loan:
_______________ %
d. Term, if any, of the public assistance loan:
_______________ months
e. Name of Public Assistance Program:_________________________________
Other items which must be provided appear on page 1 of the application. Make sure you leave no blanks on page 1
such as Census Tract #. Census Tract information for all properties in the 2000 census can be found at:
FFIEC.gov./Geocode/default.aspx.
Enter property address, print out map and include in application.
aha Housing
INCOME SUMMARY WORKSHEET
c/o The UPS Store
7918 El Cajon Blvd. Ste. “N”
Box # 289
La Mesa, California 91942
City of Oceanside MCC Program
(619) 469-2002
Aug. 2013
Instructions for calculating income:
1. Include the income of each adult who will go on title, and their spouse, and any adult over age 18 that will occupy
the property.
2. BASE WAGES: use current base monthly wage x 12 — Do Not Average Base Wages!
3. SPORADIC INCOME: For all other sporadic sources of income, calculate an average figure from a period of
year-to-date plus up to 2 prior years. Average only that time which was spent at the same job. Submit your
calculator tape, or Excel spreadsheet calculations, and label the figures.
4. SELF-EMPLOYED: For the self-employed applicant, add the current year-to-date total net earnings from the
current profit and loss statement plus two prior years’ net earnings. Add back in depreciation amounts, then
figure the average monthly income for the entire period. Enter that as “monthly wage”. Submit calculator tape
or Excel spreadsheet calculations, all pages of tax returns, and current P&L statement.
5. Have the applicant review the “Other” sources of income listed below and identify any that apply, and enter it on
the line labeled “Other”.
6. Always submit calculator tape or Excel spreadsheet calculations, current pay stubs, and any other
supporting documentation.
7. Please submit a VOE whenever it can be obtained.
Applicant 1
Applicant 2
Applicant 3
Last Name
________________
________________
________________
First Name
________________
________________
________________
Soc. Sec. No.
________________
________________
________________
Monthly Wage
$____________
$____________
$____________
Bonus
$____________
$____________
$____________
Overtime
$____________
$____________
$____________
Commissions
$____________
$____________
$____________
Part-time Emp.
$____________
$____________
$____________
Child Support
$____________
$____________
$____________
Other*
$____________
$____________
$____________
Total Monthly
$____________ (i)
$____________(ii)
$____________(iii)
Total Gross Annualized Household Income: $___________________ X 12 = $___________________
(i + ii + iii)
* Source of “Other” Income:_______________________________________
Income sources that must be counted include Alimony, Pensions, Annuities, Tips, Fees,
August
2004
Royalties, Dividends, Disability, Investment Income, Social Security, Death Benefits,
Public
Assistance, Insurance payments, Business Income, Unemployment Compensation, Net
Rental Income, Veterans Admin. Comp., Winnings, Prizes, Severance Pay
MCC RECAPTURE TAX NOTICE 1
City of Oceanside MCC Program
aha Housing
c/o The UPS Store
7918 El Cajon Blvd. Ste. “N”
Box # 289
La Mesa, California 91942
(619) 469-2002
NOTICE #1
INITIAL NOTICE TO MORTGAGOR
OF POTENTIAL RECAPTURE TAX
(A more detailed explanation of the recapture tax will be delivered with the
mortgage credit certificate to the buyer shortly after the close of escrow.)
Notice is hereby given that, if you receive a mortgage credit certificate which entitles you to an annual federal tax
credit, you may be subject to a special "recapture tax" for federal income tax purposes which would be imposed at
the time you sell the residence for which you obtained a mortgage credit certificate.
This potential tax, which is not imposed until you sell your home, is based on the concept that through the mortgage
credit certificate, the federal government has enabled you to take a tax credit equal to 20% of the interest you pay on
your home mortgage. The amount of the potential tax increases for the first five years that you own the home and
thereafter declines. No tax is imposed if you hold (do not sell) your home for a total of nine or more years.
A number of factors determine the amount of tax imposed at the time of the sale of the home. These include:
1. the original principal amount of the home mortgage,
2. the number of complete years that pass before you sell the home,
3. the median family income for your area at the time you bought the home, and
4. your modified adjusted gross income at the time you sell the home.
Generally, if you sell the residence more than nine years after the close of escrow, no recapture liability arises.
Also, if you sell the residence during the first nine years after closing but your income does not increase more than
5% per year during that period, you will likely not incur recapture liability. Finally, in no case will recapture liability
exceed 50% of your gain from the sale of the residence.
After your loan closes, you will be given a second notice by the MCC Program with certain additional information
that will be needed to calculate the amount, if any, of "recapture tax." You should also consult your tax advisor
regarding your calculation when preparing your post-sale tax return.
Please sign below to indicate that you have received your copy of the Recapture Notice.
Date
Signature of Applicant #1
Signature of Applicant #2
Aha Housing
MCC SELLER AFFIDAVIT
Phone 619-469-2002
On the web: www.ahahousing.com
City of Oceanside MCC Program
c/o The UPS Store
7918 El Cajon Blvd. “Ste. N”
Box # 289
La Mesa, CA 91942
Aug. 2013
To the Lender: Complete the first 3 blanks before sending to Seller.
To the Seller: The Party purchasing your home is applying for a mortgage credit certificate (MCC) from The City of
Oceanside. The MCC is a federal tax credit. The IRS requires you (the seller) to sign this document as verification that
you and the buyer have agreed upon the sales price. The lender should have completed the blanks prior to forwarding
this affidavit to you. Your cooperation in executing this completed document, and returning it to the lender as
quickly as possible, is vital because escrow cannot close before that happens. Feel free to call the MCC program
office at the phone number shown above with any questions. Do not sign this document if it is blank.
I, as the seller of a single family residence at ____________________________________________________________
________________________________________________________________________________________________
understand that the buyer,
Certificate from the City of Oceanside MCC Program.
, is applying for a Mortgage Credit
The Purchase price is
, excluding all settlement costs, title and transfer costs, title insurance,
survey fees, credit reference fees, legal fees, appraisal fees and points paid by the buyer.
Outside of escrow, I have received no money from the buyer and have entered into no contract or agreement with the
buyer regarding the disposition of this property.
The property is a completed unit, suitable for occupancy.
I acknowledge that any material misstatement negligently or fraudulently made by me in connection with MCC application
is a federal violation punishable by a fine and revocation of the Certificate, in addition to any criminal penalty imposed by
law.
Date
(Print) Name of seller
Current address
*Social security number
Signature
Date
(Print) Name of seller
Current address
*Social security number
Signature
*Note: Seller has a choice of either providing his/her social security number or having this document notarized.
When executed, seller should return this document to the lender.
City of Oceanside (MCC)
Mortgage Credit Certificate
Program (619) 469-2002
Aug. 2013
OPTIONAL FORMS
(Required - for certain situations)
The following pages are Optional Forms and are to be completed and submitted - only
when necessary.
 Broker Certification—to be completed by Broker if Funding lender not enrolled in MCC
Program
 Declaration of No Income – to be completed for any adult in the household who earns
NO INCOME.
 Declaration of Non-Occupying Co-Signer - to be completed if there are any NonOccupying Co-Signers.
 Income Tax Affidavit – to be completed if applicant(s)
a.) did not have to file a FEDERAL Income Tax Return for one or more of the three
(3) years required for this MCC application; or
b.) to take the place of the most recent prior year’s FEDERAL Tax Return, if the MCC
st
th
loan is scheduled to close between January 1 and February 15 .
th
Note: after February 15 , the previous year’s FEDERAL Tax Return is required, by the
IRS, to be submitted with the MCC application.
th
For example: on or after February 16 , 2014,
when you submit the MCC application to our office,
you will have to include the FEDERAL Income Tax Return for the tax year of 2013.
MCC Broker Certification
Aug. 2013
City of Oceanside MCC Program
c/o The UPS Store
7918 El Cajon Blvd. Ste. “N”
Box # 289
La Mesa, CA 91942
Phone (619) 469-2002
BROKER CERTIFICATION
This form is to be submitted by the Originating Lender in each MCC application package
submitted to the Program in which the funding lender is NOT enrolled in the MCC Program.
I am the Originating Lender for this MCC transaction. The Funding Lender is not enrolled. I agree
to my responsibilities for this transaction which include the following steps:
1.) I will take full responsibility for the completion of the Closing Affidavit and the return of that
Affidavit to the MCC Program office within 10 days of closing.
2.) At the end of the calendar year, I will request that the MCC Program send me the information I
need to complete the IRS Form 8329. I understand that this is a simple one-page form that I
must complete by January 30, and send it to the IRS.
Failure to complete these responsibilities will result in a loss of membership in the MCC Program,
and could reflect poorly on the program itself. In exchange for my enhanced responsibilities I will
be free to seek the best financing possible for my buyers, regardless of whether the funding lender
is enrolled.
Originating Lender signature:
Date Submitted:
____________________________________________________
_________________
Originating Lender Name and Company:_____________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
Actual Funding Lender (Company):_________________________________________________
Buyer Full Name:
______________________________________________________
Property Address:
______________________________________________________
__________________________________________________
MCC #___________________ (Assigned by MCC office)
aha Housing
c/o The UPS Store
7918 El Cajon Blvd. Ste. “N”
Box 289
La Mesa, California 91942
DECLARATION OF NO INCOME
City of Oceanside MCC Program
(619) 469-2002
Aug. 2013
DECLARATION OF NO INCOME
We are required to verify all income of anyone receiving assistance. To comply with this
requirement, we ask your cooperation in supplying the information requested in the Certification
below. This information will be held in strict confidence and used only for the purpose of
establishing eligibility for the First Time-Home Buyer Program.
CERTIFICATION of NO INCOME
I,
NOT receive income from ANY source.
,
do hereby certify that I do
I understand sources of income include, but are not limited to, the following:
Employment by other
Retirement Funds
Unemployment Compensation
Alimony
Social Security
Income from Assets
Workers Compensation
Pensions
Child Support
General Assistance
Education Grants/Work Study
Disability
Self Employment
Union Benefits
AFDC
Family Support
SSI
Annuities
I certify that the foregoing is true, complete and correct. Inquiries may be made to verify
statements herein. I also understand that false statements or omissions are grounds for
disqualification and/or prosecution under the full extent of California law.
This signature signifies that I receive
NO INCOME from ANY SOURCE.
Signature
Print Name
Social Security Number
Date
DECLARATION OF
NON-OCCUPYING CO-SIGNER
City of Oceanside MCC Program
(619) 469-2002
Aug. 2013
DECLARATION OF
NON-OCCUPYING CO-SIGNERS
The MCC Regulations require that all borrowers who are listed on the Title (Deed of Trust) MUST
occupy the property as their principle residence. Non-Occupying Co-signers are allowed, in
connection with the MCC program, provided they will not go on Title. To comply with this
requirement, we ask your cooperation in supplying the certification below.
Primary Borrower(s): __________________________________________________
#1 Non-Occupying Co-Signer:________________________________________
#2 Non-Occupying Co-Signer:________________________________________
This document certifies that the Non-Occupying Co-Signer(s) listed above are NOT going on the Title
(Deed of Trust) to the first mortgage loan, in connection with this MCC application, being funded by
_____________________________________________________________________________________,
(Company Name of Funding Lender)
I certify that the foregoing is true, complete and correct. Inquiries may be made to verify statements
herein. I also understand that false statements or omissions are grounds for disqualification and/or
prosecution under the full extent of California law.
******************************************************************************************************
Funding Lender
Representative:_____________________________________________________________________
Signature
____________________________________________________________________________________________________
Print Name
Date
____________________________________________________________________________________________________
Title of Funding Lender Rep.
Phone#
**************************************************************************************************
The signature(s) below signify that I (we) as Non-Occupying Co-Signer(s) will not occupy the
property purchased in connection with this MCC application, and are not going on Title (Deed of
Trust) to the above mentioned loan.
#1
Non-Occupying
Co-Signer:______________________________________________________________________
Signature
___________________________________________________________________________________________________
Print Name
Date
#2
Non-Occupying
Co-Signer:______________________________________________________________________
Signature
___________________________________________________________________________________________________
Print Name
Date
aha Housing
MCC INCOME TAX AFFIDAVIT
c/o The UPS Store
7918 El Cajon Blvd. Ste. “N”
Box # 289
La Mesa, California 91942
City of Oceanside MCC Program
(619) 469-2002
INCOME TAX AFFIDAVIT
To be completed only if:
1) The applicant was not required by law to file a FEDERAL income tax return for one or more of the three
prior tax years; or
th
2) The applicant is applying for a loan which is expected to close between January 1 and February 15 .
th
Note: After February 15 , the most recent year’s FEDERAL tax return must be completed and
submitted with the MCC application.
This affidavit is not required if the home being purchased is in a federally “targeted” census tract.
I am an Applicant for the Mortgage Credit Certificate Program, and I am a first-time homebuyer. I have not
owned a principal residence* during the last three years. I understand that the MCC program requires me to
submit copies of my federal income tax returns for that three year period, as evidence that I did not take a
property tax or mortgage interest deduction on my tax returns during that time.
I am signing this affidavit for one of the two reasons stated below.
CHECK ONE:
1. I hereby certify that I was not required by law to file a federal income tax return for the year(s) and
the reason(s) stated below. I am prepared to submit documentation to prove that I did not own a home
during that period.
Year(s) ____________. Reason(s): (Must be Completed)
_____ 2. I certify that the closing in connection with which I am seeking a MCC is occurring between January
1 and February 15, and that I have not yet filed my federal income tax return for the prior tax year. Regarding
my principal residence during that year, I am not entitled to claim a deduction for property taxes and/or
mortgage interest.
I acknowledge and understand that this Affidavit will be relied upon for purposes of determining my eligibility for an MCC. I acknowledge
that a material misstatement negligently made by me in connection with an application for an MCC will constitute a federal violation
punishable by a fine, and a material misstatement fraudulently made in this Affidavit or in any other statement made by me in
connection with the application for an MCC will constitute a federal violation punishable by a fine, revocation of the certificate and any
other penalty imposed by law. In addition, any material misstatement or false statement which affects my eligibility for an MCC will
result in a denial of my application for an MCC, or, if an MCC has been issued prior to the discovery of the false statement, immediate
cancellation of the MCC issued.
In addition, I hereby acknowledge and understand that any false pretense, including any false statement or representation; or the
fraudulent use of any instrument, facility, article, or other valuable thing or service pursuant to my participation in any MCC Program is
punishable by imprisonment or by a fine.
_______________________
Date
_________________________________________
Signature of Applicant
_________________________________________
Social Security Number
* For purposes of prior homeownership, "principal residence" means (1) a single family home, (2) condominium or townhouse unit, (3)
stock held by a tenant-stockholder in a cooperative housing corporation (as those terms are defined in Section 26 of the Internal
Revenue Code, (4) occupancy of a unit in a multifamily building owned by the Applicant, and (5) any manufactured home (including a
mobile home as defined under federal law) which is of a type customarily used at a fixed location having a real estate loan. Principal
residence does not include recreational vehicles, campers, and other similar vehicles, mobile homes without a real estate loan attached,
or investment property which has not been occupied as a principal residence by the Applicant during the past three years.
Aug. 2013