KHC MCC

Mortgage Credit Certificates are available for First Time Homebuyers and allow the buyer to convert 25% of their mortgage deduction to a non-refundable tax credit. The 2009 MCC Program is designed to benefit purchasers of certain new or existing housing units located in the Commonwealth of Kentucky.

AN MCC "converts" a portion of an available mortgage loan interest deduction into a credit against the homeowner's federal income taxes. This credit has the effect of reducing the mortgage interest rate and mortgage loan payments for persons who make qualified purchases of Residences by reducing the federal income tax liability.

A Borrower who is purchasing a New or Existing Residence applies for an MCC through a Participating Lender at the same time as applying for a mortgage loan. Your lender will advise you regarding the underwriting procedures required to determine qualification and eligibility of each Applicant for an MCC. The MCC Program is only offered by qualified participating lenders and is not available through all mortgage lending companies.

KHC MCC Tax Credit at a Glance

* The MCC credit can be used in conjunction with the First Time Home Buyer $ 8,000 Federal Tax Credit

* The credit is available for homes purchased in Kentucky on or after August 3rd, 2009.

* The tax credit is available each year for the life of the original loan (refinanced loans are not eligible for an MCC).

* The applicant must occupy the eligible residence being purchased as their primary residence

* A tax credit entitles a taxpayer to subtract the amount of the credit from their total federal income tax liability. A tax deduction on the other hand, is subtracted from the adjusted gross income before federal taxes are computed.

* MCC's may be used with most FHA, VA, RHS, Fannie Mae or Freddie Mac Programs (30 year fixed rate mortgages).

* The borrower applies for the MCC at the same time they apply for their mortgage.

Equal Housing Lender. NMLS#13563. Tax credit is a state tax credit and is available for a limited time for new home buyers and is subject to restrictions and qualifications. Information subject to change without notice. Subject to credit approval and underwriting. Additional information is available at www.kyhousing.org