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Delaware Mortgage Credit Certificate Program

John Thomas June 5, 2013 Tags: , , , ,
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Delaware Mortgage Credit Certificate Program

Delaware MCCDelaware mortgage credit certificate program also known as the MCC for short, was being released by the Delaware State Housing Authority (DSHA) under section 25 of the Internal Revenue Code of 1986 in order to benefit eligible purchasers  of single-family dwelling units located within the State of Delaware, by allowing such eligible borrowers to a credit against their individual federal income tax liability.  The Mortgage Credit Certificate (MCC) is also called a First Time Home Buyer Tax Credit.  The program needs to be applied for through and eligible Delaware Mortgage Lender such as Primary Residential Mortgage in Newark, Delaware.  You can apply for the Delaware Mortgage Credit Certificate by calling 302-703-0727 or you can APPLY ONLINE.

Delaware Mortgage Credit Certificate

Eligibility Requirements for the Mortgage Credit Certificate Program:

Eligible Borrowers must meet the following requirements in order to qualify to receive a certificate under the Program:

Principle Residence Requirement – The borrower must intend to occupy the subject property as a principle residence within 60 days after the first mortgage loan closes.  A principal residence is a home occupied primarily for residential purposes.

First Time Home Buyer Requirement – Each borrower must be a Delaware First Time Home Buyer unless the home is in a federally designated targeted area or is a loan to a qualified veteran.  A first time home buyer is defined as a person who has not owned a principal residence at any time during the three years prior to closing the related mortgage loan.

Purchase Price Requirement – The maximum purchase price of the related home may not exceed 90% of the average area purchase price for the home being financed.  It can be 110% of the average purchase price if the subject property is in a targeted area.

New Mortgage Requirement – The borrower will not be eligible for a Delaware Mortgage Credit Certificate in connection with the acquisition or replacement of an existing mortgage.

Maximum Income Requirement – A borrower’s household income for the MCC may not exceed 115% (100% for families of less than three) of the greater of the applicable median gross income.  If the borrower is purchasing in a targeted area than the borrower’s household income for the MCC may not exceed 140% (120% for families of less than three) of the greater of the applicable median gross income.

Under the Mortgage Credit Certificate Program, certificates will be issued to eligible borrowers on a first come, first serve basis.  The mortgage credit certificates are only available in connection with fixed rate mortgage loans except loans financed by qualified mortgage bonds.

Each person enrolled in the Delaware Tax Credit Program can claim up to 35% of the mortgage interest paid each year on Federal Tax Return capped at a maximum of $2,000.  The program is also called the Delaware First Time Home Buyer Tax Credit Program.

Delaware Mortgage Credit Certificate Program

A tax credit is a dollar for dollar credit against tax liability on the borrower’s federal income tax return which is much better than a tax deduction which only lowers your taxable income.  The tax credit reduces the income tax due by the amount of the credit.  The maximum tax credit cannot exceed $2,000 per tax year and can be claimed each year the borrower has the mortgage.  For more information on the Delaware Mortgage Credit Certificate please call 302-703-0727 and ask for John Thomas or send an e-mail to johnthomasteam@primeres.com.

John R. Thomas
Certified Mortgage Planner – NMLS 38783
Primary Residential Mortgage, Inc. – Newark Delaware Mortgage Company
248 E Chestnut Hill Rd
Newark, DE 19713
302-703-0727 DE Office
410-412-3319 MD Office
610-906-3109 PA Office


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About John Thomas

John Thomas and his team are long-time Delaware natives. They know the local real estate market as well as they know the loan products that help them serve it. Dedicated to helping first-time buyers; the John Thomas Team are experts on first-time buyer loan programs (FHA, VA, USDA) and conduct monthly first-time buyer seminars that have been attended by more than 3000 Delaware buyers.

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