Re-issued Mortgage Credit Certificate
Although the Housing Authority of the County of Santa Cruz is no longer administering a Mortgage Credit Certificate (MCC) Program, we continue administration of the Reissued Mortgage Credit Certificate (RMCC) program for those MCC’s issued by the Housing Authority.
Refinanced/Reissued Mortgage Credit Certificates
How many times can I refinance and keep my MCC?
How do I qualify to receive a Reissued MCC (RMCC)?
What if my income has gone up?
I have married since I first got my MCC or RMCC. Does that affect my eligibility?
Our original MCC/RMCC was issued to three (3) people. We now want to remove one of the persons from the Title and/or Deed of Trust to refinance. Can we do this and still obtain an RMCC?
My original loan is a variable rate. Can I still get a new RMCC?
Can I refinance into a Negative Amortization Loan or Potential Negative Amortization Loan?
Can I refinance for more than the original loan amount or include closing costs in the new loan?
What is the Certified Indebtedness Amount?
What is the term of the Reissued MCC?
How much time do I have to apply?
Where can I go to refinance and get a reissued MCC?
Application Fee
I live in Santa Cruz County but got my MCC through CalHFA
Additional Information
Refinanced/Reissued Mortgage Credit Certificates
If you refinance your loan, you may be eligible to have your MCC reissued as a Reissued Mortgage Credit Certificate, or RMCC.
Under IRS regulations, the Housing Authority may reissue MCC credit for an MCC holder who refinances. The MCC would transfer to a Refinanced MCC (RMCC) at the refinance. The reissuance is not automatic or guaranteed. The lender who funds your refinanced loan is responsible to contact the Housing Authority to request the application. The lender must ensure the application to reissue the MCC or RMCC is submitted, complete, to the Housing Authority. The Housing Authority cannot guarantee that any particular MCC or RMCC holder will be issued a new credit certificate.
How many times can I refinance and keep my MCC?
Your MCC will become void when you refinance your original loan. If you have an RMCC and refinance, the existing RMCC becomes void. You may however, apply for a Reissued MCC when you refinance your original MCC assisted loan or RMCC assisted loan.
How do I qualify to receive a Reissued MCC (RMCC)?
Answer the following questions to see if you qualify:
a. Will this be first refinancing of your original loan?
b. If ‘No’, an additional fee may be charged for retrieving MCC/RMCC historical information.
c. Is the Funding Lender a Santa Cruz County Reissue MCC Program Participating Lender?
If you answered YES to c. then you may be qualified for a Reissued MCC.
What if my income has gone up?
You do not need to re-qualify under the income limits or the home purchase price limits.
I have married since I first got my MCC or RMCC. Does that affect my eligibility?
No. However the Reissued MC will be issued in your name only, showing your original name and any name changes as a result of the marriage.
I have remarried since I got my MCC or RMCC. Does that affect my eligibility?
No. However, the Reissued RMCC will be issued in your name only, showing
your original name and any name change as a result of the marriage.
Our original MCC/RMCC was issued to three (3) people. We now want to remove one of the persons from the Title and/or Deed of Trust to refinance. Can we do this and still obtain an RMCC?
Yes. As long as at least one original MCC or RMCC holder remains on the title, lives in the unit, and will be a borrower for the new RMCC assisted loan, they can obtain an RMCC.
My original loan is a variable rate. Can I still get a new RMCC?
Yes. Insert A-1, included in the RMCC packet held by participating lenders, explains the Hypothetical Loan Process that applies to variable rates and is included in the RMCC packet.
Can I refinance into a Negative Amortization Loan or Potential Negative Amortization Loan?
No. These types of loans are not allowed either under the RMCC or MCC Programs.
Can I refinance for more than the original loan amount or include closing costs in the new loan?
Yes. The new loan can be for more or less than the remaining principal balance of the Old Loan (the loan you are refinancing). However, the new Certified Indebtedness amount is limited to the outstanding balance of the Certified indebtedness amount of the Old Loan (the amount you still owe on the date of refinance). If your new loan is for more than the remaining Certified Indebtedness amount, the Lender will provide you with a percentage to be applied to your mortgage interest before determining the federal tax credit.
What is the Certified Indebtedness Amount?
The Certified Indebtedness amount (CI) is the portion of your loan on which you calculate the federal income tax credit. MCCs issued in Santa Cruz County let you claim a tax credit of up to 20 percent of the interest you paid on the CI.
The CI is established at the time you purchase your home and is the amount of the original first mortgage. As you pay your mortgage down, the CI is reduced.
When you refinance your home, the remaining balance of the CI is transferred to the new RMCC. If the new loan amount is higher that the remaining CI, the Lender will calculate the percentage difference between the New loan amount and the new Certified Indebtedness Amount for you.
Before you calculate your tax credit, you will have to multiply your total mortgage interest amount by that percentage. The maximum CI amount is the remainder amount on the original loan or the amount associated with the new loan, whichever is less.
What is the term of the Reissued MCC?
The Reissued MCC is valid only until the date that the original MCC assisted loan is due. If you got a 30-year loan in June 1990, your last payment would have been due in June 2020. If you refinance in 1997 with another 30-year loan, your last payment will be due in 2027, but the RMCC will be valid only until June 2020.
How much time do I have to apply?
The application and all required documentation must be received in our Santa Cruz County office within 365 days of the closing date of the New Loan (the refinancing). Applications received after December 15th in any calendar year may not receive a Reissue MCC prior to April 15th of the following year. Exceptions to the 365 day limit must be granted before application is submitted.
Where can I go to refinance and get a reissued MCC?
To be eligible for a Reissued MCC, you must work with a lender who agrees to submit the application for the Reissued MCC to the Housing Authority. The lender must contact the Housing Authority for details.
Application Fee
There will be a non-refundable fee of $375.00, paid by the applicant, that must be submitted with the application for an RMCC. Lenders will work with borrowers to complete the RMCC application packet and will submit all of the documentation to the Housing Authority. The Housing Authority works directly with the Lender to ensure completion of the process.
I live in Santa Cruz County but got my MCC through CalHFA
The Housing Authority of the County of Santa Cruz is only able to issue RMCCs to individuals who received their original MCC through the Housing Authority of the County of Santa Cruz. If you received an MCC after March 8, 2017, you must contact CalHFA for information about how to have your credit reissued.
Additional Information
Additional information on the Refinance/Reissue Mortgage Credit Certificate Program can be obtained by calling the Housing Authority of the County of Santa Cruz at (831) 454-9455 ext. 286.
For information about the Mortgage Credit Certificate program, follow this link for information about how to contact CalHFA.
