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hello everyone Mauricio Blanco here with Keller Williams Real Estate and today I'm with my favorite mortgage team the Sergio Guerrero team from Elite financing group and today we want to talk to you about the MCC or what the MCC credit is what people um know about so Sergio tell me about what the famous NCC is right now the MCC stands for mortgage credit certificate and the mortgage credit certificate is probably one of the hottest programs on the market right now it's actually been around since 1994 so it's something it's nothing new and it is a program where we're going to show you how to get free money back okay so it's been around around since 1994. yes okay cool and how does that help buyers in today's market so what it does is it is a tax credit not a tax deduction uh that you're going to receive every single year you live in the property there are income and purchase price limits for this and you need to either be a first time home buyer or not owned a home for three years so they receive a tax credit meaning that they will actually if you are let's say a W-2 employee that you get money back at the end of the year you actually will receive that credit back on top of your normal refund correct wow and if you are a self-employed you will get that as a deduction let's say someone owes five thousand dollars right and the MCC uh credit is 2500. we can take it off from 2500 from the balance of the balance wow that's fantastic and um so who qualifies for this MCC credit uh you have to be either a first-time homebuyer or haven't owned a home for three years and the income limits for one to two people are one 10 300 for a family of one to two and then a family of three or more is one twenty six eight forty five one twenty six eight forty five which is a limit and there is also purchase uh purchase limit is 401 300. 401 300 okay sweet and tell me about what Rick Rapture is what is recapture a recapture is um is if the money you're pulling out of it if you're pulling out three thousand dollars a month from the uh from the uh MCC uh they call it the perfect storm for there to be a recapture a recapture is the three things have to happen and all three of these things have to happen for there to be a recapture is one you'll have to make more than the income that's that that's the limit uh two the house has to go up in value and three you sell before eight years all three of those things have to have to be a recapture but if there which is very unlikely but if there is a recapture it is just a fraction of what they actually pull out of it so so just to explain that um recapture is if they have to pay it back correct pay a portion of it back pay a portion of it back okay and all those three things have to be in place in effect to to a perception to be to take effect exactly the longer you're in the house the less the recapture is too so if you sold it on year seven and all the perfect storm happen it would be a fraction of what they pulled out of it okay but it's not likely that that it's very unlikely I have not even seen it happen yet and I've been specialized in this program since 2006. okay sounds good and how about uh va's how those veterans veterans do not have to be a first-time homebuyer uh you know thank you Veterans for your service um VA loans are my favorite loans and on top of that veterans you don't have to be a first-time homebuyer and we also use it as income oh I've got that part yet how about using it for income yet have we yes no we have and we haven't checked out so tell us about how we can use that for income so the way it works for the MCC is there's a formula for it the formula for the MCC is loan amount times 20 loan amount times interest rate uh times 20 divided by 12 and that it will be your MCC credit and what we do is once we figure out the MCC credit let's just say it's 3 500 we divide that by 12 and we're going to give that to our buyers as extra income for loan qualifications so can you give us a quick example of what that looks looks like yes so if you want to do it with me on YouTube guys you can just take your calculator and take a 350 000 loan amount and we're going to mult I'm sorry times 6.25 interest rate just using that as a dummy interest rate and that comes out to 21 875 dollars we're going to times that times twenty percent that comes out to four thousand three hundred seventy five dollars will be your tax credit every year you live in the property every single year every single year every single year and then what we do as lenders is we divide that by twelve and I'm going to give you an extra 364 dollars a month for qualifications wow now you you were telling me before how you took one of your uh borrowers one of your clients and increases hair qualification by using this formula right we're using this strategy tell me a little bit more about that exactly we closed alone two weeks ago uh they went to a different lender won't name that lender um and they approved our client for three hundred thousand dollars one of our other realtor Partners said hey talk to Sergio uh and I think he can get you approved for more they came to me I added the MCC we uh added some closing costs to buy the interest rate and I've proved the client for 380 000 because of this program wow I wonder she was really happy she was she got by the house that she wanted the house that she wanted was 372 and you know she got qualified for 300 with the other lender and we got her her dream home and she's getting that money and she's getting that money every single year for life and just to give you heads up it was not for the MCC I had to explain the MCC to her thoroughly it took me I looked at my phone it was a 29 minute conversation because she was really drilled me about it um and once I she understood it and one thing I do tell you guys is to go talk to your tax preparer that's one of the things I do so they will actually everything that I'm telling you they'll they'll back it 100 I was like why don't you do this I've explained it to you for 29 minutes I want you to call your tax preparer and I want you you know everything that I'm telling you I want them to you know back it up and she called back 10 minutes later said hey talk to my accountant says the mcc's awesome get it and I'm like here we are perfect so someone that applied you know that checks all the boxes for the qualification for this type of program what do they need to do to store like what do they need to say or do to to say do you need to say Sergio I want this or is that something that is automatically for team Guerrero and all of our realtor partners that we work with the MCC is part of our business it's part of our structures and qualify for the MCC we're going to do it uh most lenders not every lender does offer the MCC program it is it is a program that we have to get signed up with the state and take a class and get certified for it so um and there are some lenders that do offer it and don't think outside the box to go to extra mile for their clients and don't offer to them because it does entitle a lot of paperwork on our end but guys we're here to do the extra paperwork and go the extra mile and make sure you get free money awesome and you mentioned classes now that brings me to do they need to take any classes for this no they can take an online course it takes like 20 minutes no big deal no cost uh sometimes there is some sometimes it can be like a 75 cost so but it's minor compared to all the benefits that you're okay correct okay all right sounds good sounds good well thank you so much Sergio and Stephanie and you know our goal with these videos is just to bring you know all the information of what other resources that you have available especially in today's market when things are very tight so our goal is for you to take advantage of this and if you have any questions mortgage related let them know and if you have any questions about buying a home or selling a home in today's market feel free to reach out thank you thank you thank you