The Mortgage Credit Certificate Program is a Federal Income Tax Credit that enables a taxpayer to subtract the amount of credit from his or her annual total federal income taxes. Borrowers may choose to adjust their W-4 withholding to account for the tax-credit benefit and receive a higher net monthly income! Because it is a tax credit and not a tax deduction, mortgage lenders will often use the estimated amount of the credit on a monthly basis to help the potential buyer qualify for the loan.
The mortgage credit is capped at a maximum of $2,000 per year by the IRS. The taxpayer may choose to claim the credit annually on their federal income tax return rather than monthly on a revised W-4 from their employer. If the total MCC credit exceeds the IRS limit of $2,000, the home buyer would report a $2,000 credit on their tax return.
Home buyer education is required for all borrowers and a certificate must be obtained through a HUD-approved agency. The following lending institutions are approved participants in the MCC program:
Affordable Interest Mortgage
Air Academy Federal Credit Union – (719) 592-1045
American Liberty Mortgage – (303) 458-3778
Bank of America – (720) 529-6332; (970) 569-3561; (970) 818-3031
Citywide Home Loans – (303) 996-7000; (866) 437-0200
Cornerstone Mortgage – (303) 317-5461
Megastar Financial Corp.
Pinnacle Mortgage Group – (303) 716-9000; (877) 716-9006
Summit Mortgage Company – (303) 779-0591; (303) 991-2749; (720) 200-9480
Sun West Mortgage
The Mortgage Network – (303) 394-2121
Universal Lending Corporation – (720) 524-2679
Uptown Mortgage – (303) 839-5262
Wells Fargo Home Mortgage – (303) 980-7686; (720) 344-7200
WR Starkey Mortgage – (303) 279-3132; (720) 489-0712; (303) 671-8733
Denver enabled this program by using $30 million of Private Activity Bond Allocation. The program is available through December 2014, or while funds remain.