In Escrow for 1st home in IR: How to get MCC (Mortgage Credit Certificate)

An MCC may take longer to process than your purchase contract allows. You may risk cancellation if you won't close within the escrow period you agreed to when the contract was accepted. Most MCC's take 30+ days to process and if you're already in escrow it may be too late.

That link can send you to a list of lenders capable of funding loans with an MCC. The last time I sent through a deal with an MCC was some time ago, but I will PM you with a good contact person who may be able to assist.

Ask your seller if you can extend your escrow. You may have to pay "X" as a per diem in order to capture the MCC benefits. $2,000 one time to extend escrow in order to get $2,000 annual benefit is a tradeoff worth considering.

My .02c
 
Soylent Green Is People said:
An MCC may take longer to process than your purchase contract allows. You may risk cancellation if you won't close within the escrow period you agreed to when the contract was accepted. Most MCC's take 30+ days to process and if you're already in escrow it may be too late.

That link can send you to a list of lenders capable of funding loans with an MCC. The last time I sent through a deal with an MCC was some time ago, but I will PM you with a good contact person who may be able to assist.

Ask your seller if you can extend your escrow. You may have to pay "X" as a per diem in order to capture the MCC benefits. $2,000 one time to extend escrow in order to get $2,000 annual benefit is a tradeoff worth considering.

My .02c
Click to expand...

Please let me know who that person is who can assist?
 
Soylent Green Is People said:
An MCC may take longer to process than your purchase contract allows. You may risk cancellation if you won't close within the escrow period you agreed to when the contract was accepted. Most MCC's take 30+ days to process and if you're already in escrow it may be too late.

That link can send you to a list of lenders capable of funding loans with an MCC. The last time I sent through a deal with an MCC was some time ago, but I will PM you with a good contact person who may be able to assist.

Ask your seller if you can extend your escrow. You may have to pay "X" as a per diem in order to capture the MCC benefits. $2,000 one time to extend escrow in order to get $2,000 annual benefit is a tradeoff worth considering.

My .02c
Click to expand...

Here's a SAD Response i received from my lender: a big bank (please note that its been only 13 days since i am in escrow and this is a brand newly built property purchase)

Not offered however. You are locked and approved. Any changes to the program at this point will add 45 days to the process
 
If you are 13 days into a 30 day escrow, you don't have time to get the MCC.

If you're 13 days into a 45 day escrow, it's best to reach out to the builder and see what the penalties might be if you were to not close on time. If it's under $2k, and if they agree to the extension (must be confirmed in writing) then it might be worth it.

If you're 13 days into a 60 day escrow, there is time to switch lenders and get the MCC.

Sending PM.
 
Soylent Green Is People said:
If you are 13 days into a 30 day escrow, you don't have time to get the MCC.

If you're 13 days into a 45 day escrow, it's best to reach out to the builder and see what the penalties might be if you were to not close on time. If it's under $2k, and if they agree to the extension (must be confirmed in writing) then it might be worth it.

If you're 13 days into a 60 day escrow, there is time to switch lenders and get the MCC.

Sending PM.
Click to expand...

Please check PM
 
After all number crunching for a best case scenario with 3.75 interest rate on 417k, i found out that with MCC i would have received $2591 in tax credits every year :( and after calculating my monthly payments (factoring in 4.3 versus 3.75) , there's an additional $1632/year i would pay with 4.3 interest rate...so basically a difference of $959 per year that I can SAVE !!!

Considering i plan on keeping the condo for 5 years = approx 5000 $ in tax savings !

But again if i rent the condo during these 5 years, how do Cal FHA find out and cancel the MCC?
 
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