Help me please!

[Anonymous]

Raybyrnes, thanks for this information. I don’t understand what you mean by this: “In any event go through posts for Temecula and the areas you are interested in.”

Is there a housing commission for the Temecula area? I am googling it and can’t find anything yet.

[Raybyrnes]

There are commission for housing all over the United States. Once you understand that there is a program in San Diego you should understand that there is a program that probably exists in Temecula. I woold google “Temecula Affordable Housing Programs” and start doing my research.

Carlsbad has it’s own housing programs and they use an equity share program. WHen Bressi Ranch was built the developer had to set aside a certain amoutn of units as affordable housing units.

Anytime you see a large scale development you need to understand that there are a portion ofr those new units that are goiing to go to a low or moderate income family or the builder is going to have to pay in lieu fees and face challenges gettting their projects approved form city councils.

Here I did the look up for you

Affordable Housing Is Available
The Housing Authority of the County of Riverside is currently taking applications for the Affordable Public Housing Program. Units become vacant at unpredictable times. Register now so that you will have your name on the list when it comes time to draw from the list.

The Affordable Public Housing Program allows you to pay 30 percent of your monthly income for rent. Low-income families that live or work in the County of Riverside are urged to apply now. Elderly and disabled residents are also encouraged to apply.

This is a federally funded program administered by the Housing Authority of the County of Riverside. The Housing Authority has been serving the County for over 50 years.

Who Can Participate in the Affordable Housing Program?
The program is for families whose annual income is classified as “low-income” (below 80 percent of the area median income, see income guideline).

How Does It Work?
When you call an office, request a waiting list registration form. The program has been called “conventional housing” or “public housing” or “HUD affordable housing.” The units are owned and managed by the Housing Authority of the County of Riverside. The rent amount paid by the tenant is 30 percent of the family’s adjusted income.

Are There Other Eligibility Requirements?
In addition to income limits, other factors are considered in the application process. One requirement is that eligible family members have legal residency in the United States. Criminal records are reviewed, since violent criminal activity and drug-related criminal activity are disqualifying factors. Credit reports are run, and references are checked to verify rent payment history and the family’s suitability for tenancy.

Families in which the head of household or spouse is elderly, disabled, or working are given preference. All information must be verified prior to being determined eligible.

Where Are the Affordable Units Located?
They are located in various cities throughout Riverside County. Riverside County is divided into East and West areas. The East County area encompasses the Banning-Beaumont area to Blythe. The West County area covers the Moreno Valley area to Corona.

East County Area
City Street
Indio Aladdin St.
Thermal Polk St.
Cathedral City Corregidor St.
Mecca Seventh St.
Desert Hot Springs Don English Wy.
Beaumont East 5th St.
Banning East Williams St.

West County Area
City Street
Rubidoux 34th St.
Rubidoux Fort Dr.
Riverside Jackson St.
Lake Elsinore Broadway St.
Lake Elsinore Fairview St.
Moreno Valley Gloria St.
Moreno Valley Dracaea St.
Moreno Valley Adrienne St.
San Jacinto Idyllwild Dr.
Perris Midway St.

Is There a Long Wait?
The wait for affordable housing assistance can vary from a short wait while your application is being processed to a year or more depending on which location you select and the required unit size. There are some larger units in the East County for which the wait is shorter. The one-bedroom units have a much longer waiting list (whether in the East or West area) because there are few one-bedroom units.

Where Can I Get an Application?
East County (Desert) Area
Indio Office
44-199 Monroe St. Ste. B
Indio, CA 92201
760.863.2828

West County Area Riverside Office
5555 Arlington Ave
Riverside, CA 92504
951.351.0700

You can call, write or request a registration form. You can also register online at http://www.harivco.org.

What Kind of Rental Units Are Offered in the Affordable Housing Program?
The units are multi-family rental units but are of various kinds. Some are single story row units and others are town-house type units. There are no single-family homes available.

Important Notes
When your name is drawn from the waiting list and you are determined to be eligible, you will be offered a unit. If you turn down the unit that is available, you will be returned to the waiting list and be placed at the bottom of the list. If you turn down a unit a second time, you will be removed from the list and will need to re-register for the program.

Housing Authority of the County of Riverside
5555 Arlington Avenue
Riverside, CA 92504
951.351.0700

44-199 Monroe St. Ste. B
Indio, CA 92201
760.863.2828
http://www.harivco.org

[Raybyrnes]

There are commission for housing all over the United States. Once you understand that there is a program in San Diego you should understand that there is a program that probably exists in Temecula. I woold google “Temecula Affordable Housing Programs” and start doing my research.

Carlsbad has it’s own housing programs and they use an equity share program. WHen Bressi Ranch was built the developer had to set aside a certain amoutn of units as affordable housing units.

Anytime you see a large scale development you need to understand that there are a portion ofr those new units that are goiing to go to a low or moderate income family or the builder is going to have to pay in lieu fees and face challenges gettting their projects approved form city councils.

Here I did the look up for you

Affordable Housing Is Available
The Housing Authority of the County of Riverside is currently taking applications for the Affordable Public Housing Program. Units become vacant at unpredictable times. Register now so that you will have your name on the list when it comes time to draw from the list.

The Affordable Public Housing Program allows you to pay 30 percent of your monthly income for rent. Low-income families that live or work in the County of Riverside are urged to apply now. Elderly and disabled residents are also encouraged to apply.

This is a federally funded program administered by the Housing Authority of the County of Riverside. The Housing Authority has been serving the County for over 50 years.

Who Can Participate in the Affordable Housing Program?
The program is for families whose annual income is classified as “low-income” (below 80 percent of the area median income, see income guideline).

How Does It Work?
When you call an office, request a waiting list registration form. The program has been called “conventional housing” or “public housing” or “HUD affordable housing.” The units are owned and managed by the Housing Authority of the County of Riverside. The rent amount paid by the tenant is 30 percent of the family’s adjusted income.

Are There Other Eligibility Requirements?
In addition to income limits, other factors are considered in the application process. One requirement is that eligible family members have legal residency in the United States. Criminal records are reviewed, since violent criminal activity and drug-related criminal activity are disqualifying factors. Credit reports are run, and references are checked to verify rent payment history and the family’s suitability for tenancy.

Families in which the head of household or spouse is elderly, disabled, or working are given preference. All information must be verified prior to being determined eligible.

Where Are the Affordable Units Located?
They are located in various cities throughout Riverside County. Riverside County is divided into East and West areas. The East County area encompasses the Banning-Beaumont area to Blythe. The West County area covers the Moreno Valley area to Corona.

East County Area
City Street
Indio Aladdin St.
Thermal Polk St.
Cathedral City Corregidor St.
Mecca Seventh St.
Desert Hot Springs Don English Wy.
Beaumont East 5th St.
Banning East Williams St.

West County Area
City Street
Rubidoux 34th St.
Rubidoux Fort Dr.
Riverside Jackson St.
Lake Elsinore Broadway St.
Lake Elsinore Fairview St.
Moreno Valley Gloria St.
Moreno Valley Dracaea St.
Moreno Valley Adrienne St.
San Jacinto Idyllwild Dr.
Perris Midway St.

Is There a Long Wait?
The wait for affordable housing assistance can vary from a short wait while your application is being processed to a year or more depending on which location you select and the required unit size. There are some larger units in the East County for which the wait is shorter. The one-bedroom units have a much longer waiting list (whether in the East or West area) because there are few one-bedroom units.

Where Can I Get an Application?
East County (Desert) Area
Indio Office
44-199 Monroe St. Ste. B
Indio, CA 92201
760.863.2828

West County Area Riverside Office
5555 Arlington Ave
Riverside, CA 92504
951.351.0700

You can call, write or request a registration form. You can also register online at http://www.harivco.org.

What Kind of Rental Units Are Offered in the Affordable Housing Program?
The units are multi-family rental units but are of various kinds. Some are single story row units and others are town-house type units. There are no single-family homes available.

Important Notes
When your name is drawn from the waiting list and you are determined to be eligible, you will be offered a unit. If you turn down the unit that is available, you will be returned to the waiting list and be placed at the bottom of the list. If you turn down a unit a second time, you will be removed from the list and will need to re-register for the program.

Housing Authority of the County of Riverside
5555 Arlington Avenue
Riverside, CA 92504
951.351.0700

44-199 Monroe St. Ste. B
Indio, CA 92201
760.863.2828
http://www.harivco.org

[Raybyrnes]

There are commission for housing all over the United States. Once you understand that there is a program in San Diego you should understand that there is a program that probably exists in Temecula. I woold google “Temecula Affordable Housing Programs” and start doing my research.

Carlsbad has it’s own housing programs and they use an equity share program. WHen Bressi Ranch was built the developer had to set aside a certain amoutn of units as affordable housing units.

Anytime you see a large scale development you need to understand that there are a portion ofr those new units that are goiing to go to a low or moderate income family or the builder is going to have to pay in lieu fees and face challenges gettting their projects approved form city councils.

Here I did the look up for you

Affordable Housing Is Available
The Housing Authority of the County of Riverside is currently taking applications for the Affordable Public Housing Program. Units become vacant at unpredictable times. Register now so that you will have your name on the list when it comes time to draw from the list.

The Affordable Public Housing Program allows you to pay 30 percent of your monthly income for rent. Low-income families that live or work in the County of Riverside are urged to apply now. Elderly and disabled residents are also encouraged to apply.

This is a federally funded program administered by the Housing Authority of the County of Riverside. The Housing Authority has been serving the County for over 50 years.

Who Can Participate in the Affordable Housing Program?
The program is for families whose annual income is classified as “low-income” (below 80 percent of the area median income, see income guideline).

How Does It Work?
When you call an office, request a waiting list registration form. The program has been called “conventional housing” or “public housing” or “HUD affordable housing.” The units are owned and managed by the Housing Authority of the County of Riverside. The rent amount paid by the tenant is 30 percent of the family’s adjusted income.

Are There Other Eligibility Requirements?
In addition to income limits, other factors are considered in the application process. One requirement is that eligible family members have legal residency in the United States. Criminal records are reviewed, since violent criminal activity and drug-related criminal activity are disqualifying factors. Credit reports are run, and references are checked to verify rent payment history and the family’s suitability for tenancy.

Families in which the head of household or spouse is elderly, disabled, or working are given preference. All information must be verified prior to being determined eligible.

Where Are the Affordable Units Located?
They are located in various cities throughout Riverside County. Riverside County is divided into East and West areas. The East County area encompasses the Banning-Beaumont area to Blythe. The West County area covers the Moreno Valley area to Corona.

East County Area
City Street
Indio Aladdin St.
Thermal Polk St.
Cathedral City Corregidor St.
Mecca Seventh St.
Desert Hot Springs Don English Wy.
Beaumont East 5th St.
Banning East Williams St.

West County Area
City Street
Rubidoux 34th St.
Rubidoux Fort Dr.
Riverside Jackson St.
Lake Elsinore Broadway St.
Lake Elsinore Fairview St.
Moreno Valley Gloria St.
Moreno Valley Dracaea St.
Moreno Valley Adrienne St.
San Jacinto Idyllwild Dr.
Perris Midway St.

Is There a Long Wait?
The wait for affordable housing assistance can vary from a short wait while your application is being processed to a year or more depending on which location you select and the required unit size. There are some larger units in the East County for which the wait is shorter. The one-bedroom units have a much longer waiting list (whether in the East or West area) because there are few one-bedroom units.

Where Can I Get an Application?
East County (Desert) Area
Indio Office
44-199 Monroe St. Ste. B
Indio, CA 92201
760.863.2828

West County Area Riverside Office
5555 Arlington Ave
Riverside, CA 92504
951.351.0700

You can call, write or request a registration form. You can also register online at http://www.harivco.org.

What Kind of Rental Units Are Offered in the Affordable Housing Program?
The units are multi-family rental units but are of various kinds. Some are single story row units and others are town-house type units. There are no single-family homes available.

Important Notes
When your name is drawn from the waiting list and you are determined to be eligible, you will be offered a unit. If you turn down the unit that is available, you will be returned to the waiting list and be placed at the bottom of the list. If you turn down a unit a second time, you will be removed from the list and will need to re-register for the program.

Housing Authority of the County of Riverside
5555 Arlington Avenue
Riverside, CA 92504
951.351.0700

44-199 Monroe St. Ste. B
Indio, CA 92201
760.863.2828
http://www.harivco.org

[Raybyrnes]

There is lot’s more information at

http://www.rivcoeda.org/Default.aspx?tabid=1198
Additionally if you are a teacher, nurse, social worker, or law enforcement there are other programs that you can look into for assistance.

I have included a sample of one program that you should be familiar with

Mortgage Credit Certificate
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. The following table illustrates how a MCC increases a borrower’s “effective home buying power”:

Effective Home Buying Power With and Without an MCC

Without MCC
With MCC

First Mortgage Amount
$300,000
$300,000

Mortgage Interest Rate
7%
7%

Monthly Mortgage (Principal & Interest Only)
$1,996
$1,996

MCC Rate
N/A
15%

Monthly Credit Amount
N/A
$262.25

“Effective” Monthly Mortgage Payment
$1,996
$1,733.75

Annual Income Needed *
$85,542
$74,304

* Annual Income Needed is based on monthly Principal and Interest (P&I) not exceeding 28% of monthly income.

How does a Mortgage Credit Certificate actually work?
Assume the homebuyer bought a home with a mortgage amount of $300,000 with an interest rate of 7% with the monthly mortgage payment of $1,996 as illustrated in the previous page.

(1) The homebuyer would pay a total of $300,000 x 0.07= $21,000 of interest in the first year (Loan amount x interest rate).

(2) Because the homebuyer has a Mortgage Credit Certificate, the homebuyer could receive a federal income tax credit of $3,150 (15% x $21,000). If the homebuyer income tax liability is $3,150 or greater, the homebuyer will receive the full benefit of the MCC tax credit. If the amount of homebuyer tax credit exceeds the amount of his/her tax liability, the unused portion can be carried forward (up to three years) to offset future income tax liability.

(3) The remaining 85% of the mortgage interest or $17,850 ($21,000 less $3,150) qualifies as an itemized income tax deduction.

(4) To receive immediate benefit of the MCC tax credit, the homebuyer would file a revised W-4 withholding from with the homebuyer’s employer to reduce the amount of federal income tax withheld from his/her wages and increase homebuyer’s take home pay by $262 per month ($3,150/12 )

(5) By applying the increase in the homebuyer take home pay of $262 towards his monthly mortgage payment of $1,996, his effective monthly payment becomes $1,734 ($1,996 minus $262).

“Tax Credit” vs. “Tax Deduction”
A “tax credit” entitles a tax payer to subtract the amount of credit from their total federal tax bill whereas a “tax deduction” is subtracted from adjusted gross income before federal income taxes are computed.

What happens if the homebuyer cannot use the entire amount of the MCC credit for the year in which it applies?
If the amount of the MCC exceeds the homebuyer’s tax liability, the unused portion of the credit can be carried forward to the next three years or until used, whichever comes first.

Time Period of the Mortgage Credit Certificate
The MCC is in effect for the life of the loan as long as the home remains the borrower’s principal residence. The MCC is not transferable to a new loan when refinancing, nor can it be assigned or transferred to a new buyer or another home. In addition, the MCC Program includes a nine year recapture provision which provides for a return of tax credits taken if the property ceases to be the borrower’s primary residence within nine years from the close of escrow. The amount of tax recapture is determined by formula, and provided to the borrower at the time the application is taken. After expiration of the nine year period, the borrower may dispense of the property without incurring penalty, but would lose the future benefits of the MCC.

Qualifying for the MCC Program
The three basic qualifications are:

(1) The borrower must be a first time Home Buyer;

(2) The borrowers annual income must fall within the program income limits; and

(3) The home being purchased must fall within the program purchase price limits. If the home is located in a Target Area, then the first-time buyer limitation does not apply and the income and cost limits are higher.

First-time Home Buyer definition
A first time Home Buyer is defined as a person who has not had an ownership interest in his or her principal residence for the previous three (3) years.

Eligible Properties
The residence purchased in conjunction with a MCC must be the borrower’s principal residence and may not be used as a business or vacation home. The home may be a detached or attached single family home, condominium unit, a co-op unit, or a manufactured home on permanent foundation (new or re-sale).

Riverside County’s MCC Allocation
In order to issue MCC’s, the County must apply to the California Debt Limit Allocation Committee for an MCC Allocation. The amount that the County received is based on a combination of factors including demonstrated need, past performance and available MCC authority.

Applying for a Mortgage Credit Certificate
Borrowers must apply for a MCC through a Participating Lender. The Participating Lender will perform an initial qualification and assist the borrower in completing the MCC submission forms. The Lender then submits the MCC application to the County. The County reviews the Borrowers qualifications and, if they meet the program guidelines, issues a letter of commitment to the Lender. The Commitment Letter must be issued prior to the close of the loan. The loan must close within 120 days of the commitment. Upon loan closing, the Lender submits the MCC Closing package to the County and the County issues the MCC, with the Lender and borrower each receiving a copy. The borrower may then claim the tax credit on their Federal Income Tax Returns. The borrower can receive the money annually as a tax refund or adjust his or her W-4 withholding form to receive the benefit via an increased pay check.

Loan terms
The loan terms depend on the Lender and type of loan you use. Depending on the mortgage marketplace and the borrower requirements, each Lender can set its own interest rate, length of mortgage term, down payment requirement, fees, points, closing costs and other loan terms. MCC’s may be used with conventional, fixed, 15-year, 30-year, or 40-year term loans, including FHA, VA, FNMA, FHLMC and privately insured loans. MCC’s may not be used in conjunction with bond backed loans, such as Cal-Vet or California Housing Financing Agency (CalHFA) loans.

Application Fee to receive a MCC
The maximum total fee for a MCC is $400. Of this, the County collects a $300 Non-Refundable application fee which may be paid by any person (buyer, seller, lender, etc.). In addition, Participating Lenders may charge up to $100 for their processing of the MCC. Therefore, the total maximum charge in association with the MCC is $400. This is separate from the other fees associated with purchasing a home, such as escrow fees, loan origination and processing fees and closing costs. Your lender can provide you with a breakdown of the total fees associated with obtaining a mortgage loan.

Copyright 2007 Riverside County EDA , Privacy

[Raybyrnes]

There is lot’s more information at

http://www.rivcoeda.org/Default.aspx?tabid=1198
Additionally if you are a teacher, nurse, social worker, or law enforcement there are other programs that you can look into for assistance.

I have included a sample of one program that you should be familiar with

Mortgage Credit Certificate
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. The following table illustrates how a MCC increases a borrower’s “effective home buying power”:

Effective Home Buying Power With and Without an MCC

Without MCC
With MCC

First Mortgage Amount
$300,000
$300,000

Mortgage Interest Rate
7%
7%

Monthly Mortgage (Principal & Interest Only)
$1,996
$1,996

MCC Rate
N/A
15%

Monthly Credit Amount
N/A
$262.25

“Effective” Monthly Mortgage Payment
$1,996
$1,733.75

Annual Income Needed *
$85,542
$74,304

* Annual Income Needed is based on monthly Principal and Interest (P&I) not exceeding 28% of monthly income.

How does a Mortgage Credit Certificate actually work?
Assume the homebuyer bought a home with a mortgage amount of $300,000 with an interest rate of 7% with the monthly mortgage payment of $1,996 as illustrated in the previous page.

(1) The homebuyer would pay a total of $300,000 x 0.07= $21,000 of interest in the first year (Loan amount x interest rate).

(2) Because the homebuyer has a Mortgage Credit Certificate, the homebuyer could receive a federal income tax credit of $3,150 (15% x $21,000). If the homebuyer income tax liability is $3,150 or greater, the homebuyer will receive the full benefit of the MCC tax credit. If the amount of homebuyer tax credit exceeds the amount of his/her tax liability, the unused portion can be carried forward (up to three years) to offset future income tax liability.

(3) The remaining 85% of the mortgage interest or $17,850 ($21,000 less $3,150) qualifies as an itemized income tax deduction.

(4) To receive immediate benefit of the MCC tax credit, the homebuyer would file a revised W-4 withholding from with the homebuyer’s employer to reduce the amount of federal income tax withheld from his/her wages and increase homebuyer’s take home pay by $262 per month ($3,150/12 )

(5) By applying the increase in the homebuyer take home pay of $262 towards his monthly mortgage payment of $1,996, his effective monthly payment becomes $1,734 ($1,996 minus $262).

“Tax Credit” vs. “Tax Deduction”
A “tax credit” entitles a tax payer to subtract the amount of credit from their total federal tax bill whereas a “tax deduction” is subtracted from adjusted gross income before federal income taxes are computed.

What happens if the homebuyer cannot use the entire amount of the MCC credit for the year in which it applies?
If the amount of the MCC exceeds the homebuyer’s tax liability, the unused portion of the credit can be carried forward to the next three years or until used, whichever comes first.

Time Period of the Mortgage Credit Certificate
The MCC is in effect for the life of the loan as long as the home remains the borrower’s principal residence. The MCC is not transferable to a new loan when refinancing, nor can it be assigned or transferred to a new buyer or another home. In addition, the MCC Program includes a nine year recapture provision which provides for a return of tax credits taken if the property ceases to be the borrower’s primary residence within nine years from the close of escrow. The amount of tax recapture is determined by formula, and provided to the borrower at the time the application is taken. After expiration of the nine year period, the borrower may dispense of the property without incurring penalty, but would lose the future benefits of the MCC.

Qualifying for the MCC Program
The three basic qualifications are:

(1) The borrower must be a first time Home Buyer;

(2) The borrowers annual income must fall within the program income limits; and

(3) The home being purchased must fall within the program purchase price limits. If the home is located in a Target Area, then the first-time buyer limitation does not apply and the income and cost limits are higher.

First-time Home Buyer definition
A first time Home Buyer is defined as a person who has not had an ownership interest in his or her principal residence for the previous three (3) years.

Eligible Properties
The residence purchased in conjunction with a MCC must be the borrower’s principal residence and may not be used as a business or vacation home. The home may be a detached or attached single family home, condominium unit, a co-op unit, or a manufactured home on permanent foundation (new or re-sale).

Riverside County’s MCC Allocation
In order to issue MCC’s, the County must apply to the California Debt Limit Allocation Committee for an MCC Allocation. The amount that the County received is based on a combination of factors including demonstrated need, past performance and available MCC authority.

Applying for a Mortgage Credit Certificate
Borrowers must apply for a MCC through a Participating Lender. The Participating Lender will perform an initial qualification and assist the borrower in completing the MCC submission forms. The Lender then submits the MCC application to the County. The County reviews the Borrowers qualifications and, if they meet the program guidelines, issues a letter of commitment to the Lender. The Commitment Letter must be issued prior to the close of the loan. The loan must close within 120 days of the commitment. Upon loan closing, the Lender submits the MCC Closing package to the County and the County issues the MCC, with the Lender and borrower each receiving a copy. The borrower may then claim the tax credit on their Federal Income Tax Returns. The borrower can receive the money annually as a tax refund or adjust his or her W-4 withholding form to receive the benefit via an increased pay check.

Loan terms
The loan terms depend on the Lender and type of loan you use. Depending on the mortgage marketplace and the borrower requirements, each Lender can set its own interest rate, length of mortgage term, down payment requirement, fees, points, closing costs and other loan terms. MCC’s may be used with conventional, fixed, 15-year, 30-year, or 40-year term loans, including FHA, VA, FNMA, FHLMC and privately insured loans. MCC’s may not be used in conjunction with bond backed loans, such as Cal-Vet or California Housing Financing Agency (CalHFA) loans.

Application Fee to receive a MCC
The maximum total fee for a MCC is $400. Of this, the County collects a $300 Non-Refundable application fee which may be paid by any person (buyer, seller, lender, etc.). In addition, Participating Lenders may charge up to $100 for their processing of the MCC. Therefore, the total maximum charge in association with the MCC is $400. This is separate from the other fees associated with purchasing a home, such as escrow fees, loan origination and processing fees and closing costs. Your lender can provide you with a breakdown of the total fees associated with obtaining a mortgage loan.

Copyright 2007 Riverside County EDA , Privacy

[Raybyrnes]

There is lot’s more information at

http://www.rivcoeda.org/Default.aspx?tabid=1198
Additionally if you are a teacher, nurse, social worker, or law enforcement there are other programs that you can look into for assistance.

I have included a sample of one program that you should be familiar with

Mortgage Credit Certificate
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. The following table illustrates how a MCC increases a borrower’s “effective home buying power”:

Effective Home Buying Power With and Without an MCC

Without MCC
With MCC

First Mortgage Amount
$300,000
$300,000

Mortgage Interest Rate
7%
7%

Monthly Mortgage (Principal & Interest Only)
$1,996
$1,996

MCC Rate
N/A
15%

Monthly Credit Amount
N/A
$262.25

“Effective” Monthly Mortgage Payment
$1,996
$1,733.75

Annual Income Needed *
$85,542
$74,304

* Annual Income Needed is based on monthly Principal and Interest (P&I) not exceeding 28% of monthly income.

How does a Mortgage Credit Certificate actually work?
Assume the homebuyer bought a home with a mortgage amount of $300,000 with an interest rate of 7% with the monthly mortgage payment of $1,996 as illustrated in the previous page.

(1) The homebuyer would pay a total of $300,000 x 0.07= $21,000 of interest in the first year (Loan amount x interest rate).

(2) Because the homebuyer has a Mortgage Credit Certificate, the homebuyer could receive a federal income tax credit of $3,150 (15% x $21,000). If the homebuyer income tax liability is $3,150 or greater, the homebuyer will receive the full benefit of the MCC tax credit. If the amount of homebuyer tax credit exceeds the amount of his/her tax liability, the unused portion can be carried forward (up to three years) to offset future income tax liability.

(3) The remaining 85% of the mortgage interest or $17,850 ($21,000 less $3,150) qualifies as an itemized income tax deduction.

(4) To receive immediate benefit of the MCC tax credit, the homebuyer would file a revised W-4 withholding from with the homebuyer’s employer to reduce the amount of federal income tax withheld from his/her wages and increase homebuyer’s take home pay by $262 per month ($3,150/12 )

(5) By applying the increase in the homebuyer take home pay of $262 towards his monthly mortgage payment of $1,996, his effective monthly payment becomes $1,734 ($1,996 minus $262).

“Tax Credit” vs. “Tax Deduction”
A “tax credit” entitles a tax payer to subtract the amount of credit from their total federal tax bill whereas a “tax deduction” is subtracted from adjusted gross income before federal income taxes are computed.

What happens if the homebuyer cannot use the entire amount of the MCC credit for the year in which it applies?
If the amount of the MCC exceeds the homebuyer’s tax liability, the unused portion of the credit can be carried forward to the next three years or until used, whichever comes first.

Time Period of the Mortgage Credit Certificate
The MCC is in effect for the life of the loan as long as the home remains the borrower’s principal residence. The MCC is not transferable to a new loan when refinancing, nor can it be assigned or transferred to a new buyer or another home. In addition, the MCC Program includes a nine year recapture provision which provides for a return of tax credits taken if the property ceases to be the borrower’s primary residence within nine years from the close of escrow. The amount of tax recapture is determined by formula, and provided to the borrower at the time the application is taken. After expiration of the nine year period, the borrower may dispense of the property without incurring penalty, but would lose the future benefits of the MCC.

Qualifying for the MCC Program
The three basic qualifications are:

(1) The borrower must be a first time Home Buyer;

(2) The borrowers annual income must fall within the program income limits; and

(3) The home being purchased must fall within the program purchase price limits. If the home is located in a Target Area, then the first-time buyer limitation does not apply and the income and cost limits are higher.

First-time Home Buyer definition
A first time Home Buyer is defined as a person who has not had an ownership interest in his or her principal residence for the previous three (3) years.

Eligible Properties
The residence purchased in conjunction with a MCC must be the borrower’s principal residence and may not be used as a business or vacation home. The home may be a detached or attached single family home, condominium unit, a co-op unit, or a manufactured home on permanent foundation (new or re-sale).

Riverside County’s MCC Allocation
In order to issue MCC’s, the County must apply to the California Debt Limit Allocation Committee for an MCC Allocation. The amount that the County received is based on a combination of factors including demonstrated need, past performance and available MCC authority.

Applying for a Mortgage Credit Certificate
Borrowers must apply for a MCC through a Participating Lender. The Participating Lender will perform an initial qualification and assist the borrower in completing the MCC submission forms. The Lender then submits the MCC application to the County. The County reviews the Borrowers qualifications and, if they meet the program guidelines, issues a letter of commitment to the Lender. The Commitment Letter must be issued prior to the close of the loan. The loan must close within 120 days of the commitment. Upon loan closing, the Lender submits the MCC Closing package to the County and the County issues the MCC, with the Lender and borrower each receiving a copy. The borrower may then claim the tax credit on their Federal Income Tax Returns. The borrower can receive the money annually as a tax refund or adjust his or her W-4 withholding form to receive the benefit via an increased pay check.

Loan terms
The loan terms depend on the Lender and type of loan you use. Depending on the mortgage marketplace and the borrower requirements, each Lender can set its own interest rate, length of mortgage term, down payment requirement, fees, points, closing costs and other loan terms. MCC’s may be used with conventional, fixed, 15-year, 30-year, or 40-year term loans, including FHA, VA, FNMA, FHLMC and privately insured loans. MCC’s may not be used in conjunction with bond backed loans, such as Cal-Vet or California Housing Financing Agency (CalHFA) loans.

Application Fee to receive a MCC
The maximum total fee for a MCC is $400. Of this, the County collects a $300 Non-Refundable application fee which may be paid by any person (buyer, seller, lender, etc.). In addition, Participating Lenders may charge up to $100 for their processing of the MCC. Therefore, the total maximum charge in association with the MCC is $400. This is separate from the other fees associated with purchasing a home, such as escrow fees, loan origination and processing fees and closing costs. Your lender can provide you with a breakdown of the total fees associated with obtaining a mortgage loan.

Copyright 2007 Riverside County EDA , Privacy

[lindismith]

WTF?????

Am I still on Piggington?

[lindismith]

WTF?????

Am I still on Piggington?

[lindismith]

WTF?????

Am I still on Piggington?

[kaycee]

Marion,

I hope that info from Raybyrnes helps. You really need to get out of there.

Does the landlord have any money held in escrow? Did you pay him a security deposit and/or last months rent? That may help you if you can’t come up with funds and need to pay up to move on. You can say that you intended the escrowed money to be your rent since the house was about to be foreclosed on.

[kaycee]

Marion,

I hope that info from Raybyrnes helps. You really need to get out of there.

Does the landlord have any money held in escrow? Did you pay him a security deposit and/or last months rent? That may help you if you can’t come up with funds and need to pay up to move on. You can say that you intended the escrowed money to be your rent since the house was about to be foreclosed on.

[kaycee]

Marion,

I hope that info from Raybyrnes helps. You really need to get out of there.

Does the landlord have any money held in escrow? Did you pay him a security deposit and/or last months rent? That may help you if you can’t come up with funds and need to pay up to move on. You can say that you intended the escrowed money to be your rent since the house was about to be foreclosed on.

[Anonymous]

Raybyrnes, thank you for all this great information. It is very, very much appreciated! I had no idea that large developments (you mentioned bressi ranch) had to set aside low income units. That would mean that I could get a really nice house below market. I wonder if that angers the neighbors knowing that a borrower got the same house for much less money??

Kaycee, the owners have a $1200 security deposit from me. In case anyone’s wondering, as far as my neighbors go, the foster teen who sexually assaulted the little girl has since moved on, therefore my sons aren’t in any real danger. But, still, I hate looking at those people when I arrive home. They seriously bring the neighborhood down.

I just ran the numbers. I know I promised the owner, but with my current financial situation the way it is (new grad), I CANNOT pay him the extra $500 for the next five months. That would put my monthly rent at $1900. I can’t do it right now.

[Anonymous]

Raybyrnes, thank you for all this great information. It is very, very much appreciated! I had no idea that large developments (you mentioned bressi ranch) had to set aside low income units. That would mean that I could get a really nice house below market. I wonder if that angers the neighbors knowing that a borrower got the same house for much less money??

Kaycee, the owners have a $1200 security deposit from me. In case anyone’s wondering, as far as my neighbors go, the foster teen who sexually assaulted the little girl has since moved on, therefore my sons aren’t in any real danger. But, still, I hate looking at those people when I arrive home. They seriously bring the neighborhood down.

I just ran the numbers. I know I promised the owner, but with my current financial situation the way it is (new grad), I CANNOT pay him the extra $500 for the next five months. That would put my monthly rent at $1900. I can’t do it right now.

[Author]

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