Mortgage Credit Certificates


Mortgage Credit Certificates
A certificate provided by the originating mortgage lender to the borrower that directly converts a portion of the mortgage interest paid by the borrower into a non-refundable tax credit. Mortgage credit certificates can be issued by either loan brokers or the lenders themselves, and are typically available only to low- or moderate-income buyers. These certificates are designed to help first-time homebuyers qualify for a home loan by reducing their tax liabilities below what they would otherwise have to pay.

Procedurally speaking, mortgage credit certificates are applied for with the originating lender after the purchase contract has been signed, but before the time of closing. A non-refundable fee is charged for this service by the party administering the program. The state or local approval that is granted can be valid for up to 120 days and is usually transferable to another property if the current loan does not close.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Mortgage Credit Certificate — In the United States, a Mortgage Credit Certificate (more commonly referred to as MCC) is a certificate issued by certain state or local governments that allows a taxpayer to claim a tax credit for some portion of the mortgage interest paid… …   Wikipedia

  • Mortgage Participation Certificate — A type of security that groups together Freddie Mac conventional mortgages. These certificates are guaranteed by Freddie Mac and are taxable by federal, state and the local government. These certificates are also referred to as pass through… …   Investment dictionary

  • Mortgage insurance — For information on insurance guaranteeing payment of the mortgage in the event of death or disability, see mortgage life insurance. Mortgage insurance (also known as mortgage guaranty) is an insurance policy which compensates lenders or investors …   Wikipedia

  • Mortgage-backed security — Securities Securities Bond Stock Investment fund Derivative Structured finance Agency security …   Wikipedia

  • Mortgage note — In the US a mortgage note is a promissory note associated with a specified mortgage loan; it is a written promise to repay a specified sum of money plus interest at a specified rate and length of time to fulfill the promise. While the mortgage… …   Wikipedia

  • Credit channel — The credit channel mechanism of monetary policy describes the theory that a central bank s policy changes affect the amount of credit that banks issue to firms and consumers for purchases, which in turn affects the real economy. Contents 1 Credit …   Wikipedia

  • Credit union — Financial market participants Collective invest …   Wikipedia

  • Form 8396: Mortgage Interest Credit — A tax form distributed by the Internal Revenue Service (IRS) and used by filers seeking to claim mortgage interest credit on their tax return. In order to claim a mortgage credit, the taxpayer must first have obtained a Mortgage Credit… …   Investment dictionary

  • Real Estate Mortgage Investment Conduit — Real Estate Mortgage Investment Conduits, or REMICs, are a type of special purpose vehicle used for the pooling of mortgage loans and issuance of mortgage backed securities. They are defined under the United States Internal Revenue Code (Tax… …   Wikipedia

  • National Credit Union Administration — Official seal Agency overview Formed March 10, 1970 Preceding agency …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.