Riverside Mortgage Credit Certificate (MCC) Program
A Mortgage Credit Certificate (MCC) entitles qualified home buyers to reduce the amount of their federal income tax liability by an amount equal to a portion of the interest paid during the year on a home mortgage. This tax credit allows the buyer to qualify more easily for a loan by increasing the effective income of the buyer.
The Riverside County MCC Program provides for a fifteen percent (15%) rate which can be applied to the interest paid on the mortgage loan. The borrower can claim a tax credit equal to 15% of the interest paid during the year. Since the borrowers taxes are being reduced by the amount of the credit, this increases the take-home pay by the amount of the credit. The buyer takes the remaining 85% interest as a deduction. When underwriting the loan, a lender takes this into consideration and the borrower is able to qualify for a larger loan than would otherwise be possible.
Down Payment Assistance Program
The City of Riverside’s Down Payment Assistance Program provides silent second mortgages to low- to moderate-income households who are income-eligible first time homebuyers to purchase homes that are in foreclosure or have already been foreclosed upon. Households earning at or below 80% of area median income (“AMI”) can receive enough assistance to ensure that their monthly housing expense does not exceed 35 percent of their monthly income with a maximum purchase price of $200,000. Households earning 110% to 120% of the AMI can apply for up to $50,000 in down payment assistance with a maximum purchase price of $250,000.
Rehabilitation loans are also available to correct minor health and safety issues as well as code issues. Rehabilitation loans cannot exceed eight percent of the purchase price. For more information on this program, please view the program brochure
or contact Neighborhood Housing Services of the Inland Empire at (909) 884-6891, ext. 250. |
