OHFA Mortgage Credit Certificate

OHFA Mortgage Credit Certificate Program

Program Description
The Ohio Housing Finance Agency and local participating lenders together are offering the 2003 Mortgage Credit Certificate (MCC) Program?an initiative aimed at helping eligible homebuyers with their home purchase.

How the program works
The MCC increases a household?s disposable income by reducing its federal income taxes. A reduced tax burden will free up more income to help households qualify for a mortgage loan and meet loan payment requirements.

With an MCC, 10% (20% in targeted areas) of the mortgage interest is a tax credit?a dollar-for-dollar reduction of income tax liability for the life of the loan. The remaining 90% (80% in targeted areas) mortgage interest continues to qualify as an itemized tax deduction for the homebuyer.

Eligibility
The program is available to first-time homebuyers (persons not owning or occupying their principle residence in the last three years), or anyone purchasing a home in a targeted area. A targeted area is defined as an economically distressed area as designated by the U.S. Department of Housing and Urban Development.

Income Limits - Franklin County
Participants in OHFA?s program must also meet established income limits and home sales price limits. Maximum sales prices vary according to whether a home is new or existing, or if it is in a target or nontarget area.

                           1-2 person household         3 or more person household
Target                          $73,600                                  $89,600
Non-target                    $64,000                                  $76,800

Sales Price Limits - New or Existing (Delaware, Fairfield, Franklin, Licking, Madison, Morrow & Pickaway Counties):

                                 1-Family              2-Family             3-Family            4-Family
Target                        $302,212             $340,385            $413,553           $477,176
Non Target                 $247,264             $278,497             $338,361           $390,416

Note: FHA Loan limits may be less than sales price limits

How to obtain a MCC
Prospective homeowners can obtain an MCC when applying for a mortgage loan at any participating lender. The mortgage loan must be new, not the refinancing of an existing mortgage loan. Lenders vary in their requirements for mortgage loans. Borrowers may use the fixed-rate financing vehicle of their choice (conv., FHA and VA mortgages qualify).

Additional resources
For more information on this program, go online at www.ohiohome.org or call the Office of Homeownership, 614/466-3821.