Are you looking to buy but worried about rising interest rates and costs associated with homeownership? An MCC might be able to help.
The Mortgage Credit Certificate Program was authorized by Congress in the 1984 Tax Reform Act as a means of providing housing assistance to families of low and moderate-income. The Hawaii Housing Finance and Development Corporation (HHFDC) is an Issuer of Mortgage Credit Certificates.
A Mortgage Credit Certificate (MCC) reduces the amount of federal income tax you pay, thus giving you more available income to qualify for a mortgage loan and assist you with house payments. The MCC is available to homebuyers who meet household
income and home purchase price limits established for the MCC Program, as well as other federal eligibility regulations. For a homeowner with an MCC, 20% of your annual interest can be used as a federal tax credit on top of the itemized tax deduction you already claim on your taxes.
Starting in 2023, the HHFDC will fund approximately $17.75 million in the Mortgage Credit Certificate (MCC) program. Applications for the MCC program will be accepted starting on January 3, 2023. Applications will be processed on a “first come, first served” basis until funds run out.
Current 2022 Program Participating Lenders are as follows:
Academy Mortgage Corporation
American Pacific Mortgage
American Savings Bank
Bank of Hawaii
Caliber Home Loans, Inc.
Castle & Cooke Mortgage, LLC
Central Pacific Bank
CMG Mortgage, Inc.
Compass Home Loans, LLC
DHI Mortgage Company Ltd.
Fairway Independent Mortgage Corporation
First Hawaiian Bank
Guaranteed Rate, Inc.
Guild Mortgage Company LLC
Hawaii State Federal Credit Union
Hawaii USA Federal Credit Union
HomeBridge Financial Services, Inc.
House of Finance, Inc.
Mann Mortgage, LLC
Mid America Mortgage, Inc.
MLD Mortgage Inc.
Movement Mortgage, LLC
Mutual of Omaha Mortgage, Inc.
Paramount Residential Mortgage Group, Inc.
Plaza Home Mortgage, Inc.
Primary Residential Mortgage, Inc.
PrimeLending, a PlainsCapital Company
RoundPoint Mortgage Servicing Corporation
Security National Mortgage Company Inc.
Territorial Savings Bank
Be aware this program is for low to mid-income borrowers, but the savings are substantial and it is worth looking into if you are thinking of buying a home in Hawaii. More details can be found on the HFDC website.