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RE/MAX Valley Real Estate, Boardman, Ohio

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RE/MAX Valley Real Estate

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Valley  Real Estate
1006 Boardman - Canfield Rd.
Boardman. Ohio
(330) 629-9200

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Your Mortgage - Questions and Answers
'Ohio Mortgage Credit Certificate'

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What is the Mortgage Credit Certificate program?

Ohio's Mortgage Credit Certificate program allows first-time home buyers to take advantage of a special federal income tax credit.

In Ohio, qualified homebuyers can receive a Mortgage Credit Certificate from Ohio Housing Finance Agency (OHFA), which can be used to reduce their Federal Income Tax tax liability every year for the life of their mortgage loan. Under Ohio's MCC program, a portion of your mortgage interest (20, 25, or 30%) becomes a tax credit that you can deduct  from your income tax burden. You may still use the remaining portion (80, 75, or 70%) of your mortgage interest as a tax deduction, as long as you have sufficient itemized tax liability.

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What are the rules for mortgage credit certificates?

To qualify for a Mortgage Credit Certificate (MCC) in Ohio you must meet Ohio Housing Finance Agency (OHFA) income limits, and properties must meet sales price limits. The limits will vary by county. Check income and sales price limits.

To qualify for an Ohio MCC, you must:

  1. Meet one of the following:
    1. Be a first-time homebuyer
    2. Purchase a home in a target area—an economically distressed area designated by the U.S. Department of Housing and Urban Development (HUD)
      1. Ohio's Target Area's
      2. Ohio Target Area Maps
    3. Be a military veteran with an honorable discharge.
  2. Occupy the property you are buying as your principal residence for every year you claim the MCC.
  3. You must meet standard credit and underwriting criteria established by the IRS and HUD for the MCC Program.
    1. See IRS Publication 530 - Tax Information for First-Time Homeowners
  4. Qualifying properties include new or existing single-family units, condominiums, and planned unit development homes within the State of Ohio. Manufactured or modular homes may be acceptable under certain circumstances.
  5. Your loan must be a new fixed rate Conventional, FHA, VA, or USDA-RD loan.
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