The Washington Mortgage Credit Certificate is not a mortgage, but a tax credit program which helps to put extra cash on your pocket every month, therefore making it possible to raise more money you’re your monthly mortgage repayments. The tax credit program offered to Washington residents ensures that fewer dollars are withheld from your monthly paycheck. There are many financial institutions which take part in this program hence interested home buyers should choose the one they will work with.
Application for Washington Mortgage Credit Certificate is processed on first come, first served basis by a network of lenders who have presence throughout the state. The lender you choose will determine if you are eligible, rate of interest, downpayment, closing costs and many more. Depending on how much you qualify, the amount of the tax credit benefit that you will get may vary from one person to another.
Washington Mortgage Credit Certificate application fees are $650. This is a one off payment that is collected when closing.
Washington Mortgage Credit Certificate works only for new home loans only. Refinancing is not allowed, unless when you are seeking for short term financing for bridging which has a term of 2 years or less. The cost of acquiring the residential property should be within the prescribed limits. Each county has acquisition cost limits depending on whether the property is located in a targeted or a non-targeted area.
Among the properties which are eligible for Washington Mortgage Credit Certificate are existing- single family homes, homes that are located on targeted as well as non targeted areas and residential properties which sit on native-American trust land. However, it’s imperative to know that not all counties in Washington State have targeted areas. It’s important that the residence be used as a primary residence and not more than 15% of it should be used for business purposes. MCC will remain valid for the entire period