Broward County Housing Finance Authority launches mortgage credit certificate program

The Housing Finance Authority of Broward County has launched a Mortgage Credit Certificate Program to help reduce home loan financing costs for qualified homeowners in Broward County.

The Mortgage Credit Certificate program entitles qualified applicants to a federal income tax credit in an amount of up to $2,000 annually. This enables qualified owners or buyers, who owe federal income taxes, to benefit from a dollar-for-dollar reduction of their tax bills. A mortgage interest deduction differs from a mortgage tax credit. A “tax credit” entitles taxpayers to subtract the amount of the credit from their total federal income tax liability.

A “tax credit” differs from a “tax deduction” which is subtracted from the adjusted gross income before federal income taxes are computed. Therefore, with a deduction, only a percentage of the amount deducted is realized in savings.

Mortgage Amount: $121,000
Mortgage Term: 30 Years
Interest Rate: 6%
Total Interest Paid First Year: $7,220
MCC Rate: x 30%
$2,166
Tax Credit: $2,000 (max. tax credit)

Additionally, the homeowner will continue to receive the tax credit each year they continue to live in the home financed under the program. Because the MCC reduces the amount of federal income tax paid it provides more available income to qualify for a mortgage loan and assist with house payments. The MCC allows 10-50 percent (currently at 30 percent and subject to adjustment) of the mortgage interest paid each year to be used as a “tax credit.”

Depending on the circumstances, some benefits might be increased monthly take home pay, a year-end tax refund, the ability to qualify for a larger home or for a mortgage loan not otherwise qualified for.

The Mortgage Credit Certificate is not a mortgage; however, it may be used in conjunction with a first mortgage from a participating lender (except a mortgage revenue bond loan.) Borrowers must meet normal mortgage underwriting requirements, which demonstrate credit worthiness, and meet the program’s income and home purchase price requirements. Borrowers may also use any down payment assistance and grant programs available through any source acceptable to the lender.

To qualify borrowers must be first-time homebuyers who have not owned their principal residence during the last three years.*

Non-Targeted / Targeted
1-2 Family members $79,200 /  $95,040
3+ Family members $91,080 / $110,880

The New or existing home purchase price may not exceed $365,854 $447,154

*This requirement is waived for homes purchased within a targeted area or by a qualified veteran. A targeted area is a census tract in which seventy percent (70%) or more of the families have an income which is eighty percent (80%) or less of the statewide median family income. Due to Wilma Go Zone, all Broward County is treated as a Target Area for homes financed on or before December 31, 2010 so the rule for three years would not apply.

The purchase can be for a new or existing single family home (attached or detached), condo, townhome, certain manufactured homes and Plan Unit Development which must be within Broward County.

If you move in the first full nine years you own the home, make a profit on the sale, and have income that exceeds the allowable income at the time of the sale, you may be subject to recapture. For more information, ask for a recapture brochure.

So what is the next step?

• Have a participating lender pre-qualify you for a first mortgage loan and determine if an MCC benefits you.
• Locate a home by using a professional such as a Realtor.
• Make an offer for the property.
• Return to your lender and comply with lender requirements. (There is an MCC application fee of $350. The fee is paid at closing and subject to change.)

If you already own a home, current homeowners with a mortgage loan originally financed through an Adjustable Rate Mortgage (ARM) and made after December 31st, 2001, but before January 1st, 2008, may qualify for the MCC Program. Contact a participating lender for information on Qualified Subprime Refinancing. Some local lenders already participating include:

Flagship Financial Services, Inc
1500 NW 62 Street #206
Ft. Lauderdale, Florida 33309
Marcy Angrand
Phone:
Fax:
Email:
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PNC Mortgage
1166 W Newport Center Drive, Suite 311
Deerfield Beach, Florida 33442
Terri Darvish
Phone: 561-926-7001
Fax: 866-575-1204
Email:

Angelo J. Marino
Phone:
Fax: 888-288-0401
Cell:
Email:
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Bank of America Home Loans
1776 Pine Island Road, Suite 100
Plantation, FL 33322
Bonnie Gould
Phone:
Fax: 866-517-0956
Cell:
Email: http://ae.bankofamerica.com/bonniegould

For more information, contact the Broward County Housing Finance Authority at or email .

Lenders that may be interested in participating in the MCC program should contact Norman Howard, Mildred Reynolds or Teri Schuler at or 4941. Lenders click here for more details.

About Valerie J.: As an architectural consultant, LEED AP, LEED certification reviewer, real estate broker and AIA associate, Valerie J. Amor is dynamically engaged in sustainability and issues regarding the built environment. Actively participating in several local, county and national organizations and committees focused on sustainability issues, she is also owner/principal of Drawing Conclusions and founder/president of Green Collar Connection, companies engaged in sustainable design, real estate development, green job training and research. Knowledgeable and well connected she brings you timely and thoughtful articles. Reach her at .

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5. Florida Homebuyer Opportunity Program in Miramar

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