These programs provide a tax credit to homebuyers thus reducing the amount of Federal income tax the homebuyer pays. Eligibility requirements are detailed in the program features.
The Sacramento Mortgage Credit Certificate (MCC) Program is designed to provide homeownership assistance on home purchases within the cities of Sacramento, Elk Grove, Folsom, Isleton, Galt, Citrus Heights, Rancho Cordova and the County of Sacramento. The MCC reduces the amount of Federal income tax a homebuyer pays, thus giving more available income to qualify for a mortgage loan and to make monthly mortgage payments.
- 20% Mortgage Credit Certificate – a tax credit of 20% of the annual mortgage interest paid (amount of the credit cannot be more than the annual federal income tax liability after all other credits and deductions have been taken into account)
- MCC will be in effect for the life of the original mortgage loan provided property remains owner occupied
- MCC may be reissued one time, upon the first refinance of the original mortgage loan
- MCCs may be used with conventional loans, fixed-rate or adjustable loans, FHA and VA loans (MCCs are not available with bond-backed loans such as CHFA or Cal-Vet)
- 40 percent of an MCC allocation is reserved for households whose income does not exceed 80 percent of the area median adjusted for family size
- are first-time homebuyers (have not owned and occupied a home as a principal residence within the preceding three years) (in federally designated target areas, you do not have to be a first-time homebuyer)
- are able to qualify for a loan to purchase the home
- will live in the home being purchased
- do not exceed the following income limitation:
|1 or 2 person household
|3 or more person household
Single family homes that are located within the cities of Sacramento, Elk Grove, Folsom, Isleton, Galt, Citrus Heights, Rancho Cordova and the unincorporated areas of the County of Sacramento.
- maximum purchase price limits:
New and Existing Homes
Federally Designated Target Areas:
The following census tracts are federally designated target areas:
5, 7, 9, 10, 11, 13, 18, 21, 27, 28, 37, 42.03, 44.02, 45, 46.02, 49.03, 50.02, 52.01, 53, 55.06, 62.02, 64, 66, 67.02, 68, 73, 74.13, 75.03, 88, 91.10
To apply for the program, please contact any of our approved lenders. The MCC application is made in conjunction with the application for a mortgage loan to purchase the home. The MCC application must be approved prior to close of escrow on the home purchase. For additional information please call (916) 440-1393.
Approved Lenders List
The Reissued Mortgage Credit Certificate (RMCC) Program is designed to reissue Mortgage Credit Certificates to current MCC holders who refinance their original mortgage loan for the first time.
Conditions for Reissuance
- an MCC with respect to the property had to be properly issued in the first place
- the refinance must be the first refinance of the original mortgage loan
- the Certified Indebtedness Amount (the portion of the loan on which the interest for the tax credit is calculated) of the RMCC is limited to the outstanding principal balance of the original loan at the time of refinance
- the tax credit rate on the RMCC cannot exceed the tax credit rate of the original MCC
- a higher interest credit than would have been available under the original certificate cannot be claimed for any taxable year – a Credit Cap Limit is provided upon reissuance
- the RMCC is good only until the maturity date of the original mortgage loan (unless the maturity date of the new loan is prior to that of the old)
- the original loan may be fixed rate, variable rate, graduated payment, and in certain instances balloon payment loans with a conversion/extension addendum
- there is no requalification of borrower eligibility in terms of income, purchase price of the home, household size or marital status – owner occupancy is still required
- the RMCC is reissued in the name of the original MCC holder(s) only
- there is a $250.00 application fee
Documentation Required for Reissuance
- copy of original Mortgage Credit Certificate
- copy of Promissory Note (with Riders or Addendums) on Old Mortgage Loan
- copy of Promissory Note (with Riders or Addendums) on New Mortgage Loan
- if the old loan was an Adjustable Rate Mortgage, submit a copy of the Truth In Lending Disclosure Statement for the new loan
- copy of the payoff statement for the old loan
- copy of the HUD-1 Settlement Statement from the closing of the new loan
- $250 application fee made payable to SHRA
To apply for the program, or for additional information please call (916) 440-1393.
Weekly Funding Update
Weekly Funding Update (PDF)