Initials Community Service Certificate Made Easy

Initials community service certificate

thank you for your interest in the mortgage credit certificate program by the community investment corporation this video tutorial is meant to guide you through our application so that i can make clearer any areas that are hard to understand and help you to figure out where you need to initial and where you need to sign i'm going to move through this fairly quickly if you are not sure at any point which sections apply to you or whether you should initial next to a or b or something like that feel free to give us a call at 520-462-4622 or email us at mcc at cic tucson.org so without further ado let's move to our application there are four documents in this package and you should have been emailed this package we'll start with the first document this exhibit a you can skip this first page there's nothing for you to fill out here and move right on to exhibit a page a2 this page is your personal information so in section one you'll be filling out your legal name your current residence where you live now not the home that you're purchasing your telephone number your email address and your social security number now if you are the only person who is listed on the loan you are the only person whose information you should be reporting here if however you have a co-borrower on your loan whether it be a spouse a family member a friend or just anybody who's co-borrowing on the loan with you both of you will need to fill out this application so you'll put two legal names two phone numbers two emails and so forth and and that co-borrower will also need to initial and sign everywhere that you initial and sign on all four of these documents moving on number two this is where you will list the address of the residence that you are purchasing on the next page number three this is your lending information so the name is the name of the lending facility so this might be nova home loans or guild mortgage or summit funding or any other lender address is their physical location and loan officer is the name of the person you have been working with number four and number five do not require any initials or anything you don't have to do anything but you need to know what they say because when you sign the document at the end you are agreeing to everything that's written in this document so number four states that the property that you're purchasing is intended to be used as your principal place of residence this means it will not be a second home a summer home a vacation home or an income property you intend to live there and number five says the same goes for the land that the home sits on so any yards or any acreage that it comes with is intended for your residential purposes only number six you will initial either next to one or two if you are purchasing a mobile home you will initial next to two if you are not purchasing a mobile home you will initial next to one number seven you will initial next to a if you are purchasing a new build home so if nobody's ever lived in this home before you you'll initial next to a otherwise you will turn the page and initial next to b that you are purchasing a previously existing home that someone else has lived in before on number eight um this is the section that deals with the first time homeowner requirement so in order to get into this program you either have to be a first-time homeowner a veteran or purchasing in a targeted area if you are a first-time homeowner you will be initialing here next to a anybody who hasn't owned a home in the last three years counts as a first time home buyer and if you're not sure whether you've owned or not read through this paragraph this paragraph deals with what counts as ownership and what doesn't count as ownership and if you have further questions please call us now if you are a first time home home owner and you haven't owned in the last three years you have to fill out these next two sections the first this is the list of your previous residences over the last three years so if you haven't owned in the last three years where did you live you'll list the addresses here and whether you rented those locations or if you lived with family or lived with friends or any other arrangement and then the dates in which you lived at those properties just month and year is fine and then the next three lines on the next page correspond to those three lines so for each address that you listed here you will list the name of somebody and their address and telephone number who can confirm that you lived in that address but that you did not own that property so in most cases it's going to be a landlord or it might be the leasing office at an apartment complex or it might be the name of a family member or a friend that you lived with but it'll be somebody for each property specifically who can verify that you lived there but didn't own it now if you didn't initial next to a that is you are a homeowner or have been a homeowner in the past three years then you are either a veteran or you're purchasing in a targeted area if you're purchasing in a targeted area you will initial here next to c if you're a veteran you will need an additional form from us please give us a call and let us know and we will supply that form to you that's your veterans affidavit be here you can skip this applies only for people who are using the mcc for home improvement purposes but since you are purchasing a home that won't be you number nine you will either initial next to one or two if you filed taxes for the past three years you will initial next to one and you will need to provide us a copy of those three years tax returns so the three most recent tax years if for some reason you didn't file on any given tax year then you will initial next to number two you'll supply us the taxes that you do have and then we will give you a form to fill out for any year that you didn't file that just certifies that hey i didn't file on that year on number 10 in this blank line this is where you will report to us the total purchase price of the home so this isn't your loan amount this is the offer that you made to the sellers that they accepted so the total price that you're paying and then on a or b if you are purchasing the home and the land that it sits on then you will initial next to a if instead you are purchasing the home but you're leasing the land then you'll initial next to b do not confuse leasing the land with the homeowners associations fee if you're paying an hoa fee that does not mean that you don't own the land you still own the land you're just essentially paying into a club membership if you're renting the land that means that you've probably purchased from one of i believe two organizations in tucson that are called land trusts you should know if you're entering into that sort of agreement and you should have signed paperwork about it but if you're not sure you can call and ask us or ask your realtor 11 through 15 do not require initials but let me tell you what they say 11 states that no special arrangement or secret arrangement has been made whereby you are secretly paying more money than you reported in 10 for the price of the house so you're not slipping the seller extra cash number 12 it states that no portion of your financing has come from a tax-exempt bond there aren't any tax-exempt bonds so this will not apply to you number 13 states that no person who's related to you will be paid interest on your mortgage loan so you haven't taken out a personal loan from a relative for the purchase of the home number 14 states that the mortgage credit certificate once it's issued can't be transferred so it's only for you in this property it can't be transferred over into somebody else's name nor can it go with you if you ever decide to move to another property so it's only for you and this home number 15 states that you can seek financing from any lender that you choose we don't have a proprietary list that we work with number 16 on the next page in this blank line here this is where you will report your estimated annual income so whatever you think you are going to make this year and by you i mean your household so anybody that you file taxes with anybody who's making money who lives into under the same roof as you so your household income and this is pre-tax number 17 states that any fees that you're paying to the lender to the best of your knowledge are fair and customary number 18 that in order to qualify for an mcc you have to apply and be approved prior to closing on your mortgage loan number 19 and number 20 go together these state that all of this information that we're collecting from you so your taxes this application your loan application all of this is being gathered to make sure that you're eligible for an mcc that you meet our program qualifications and any information that is false or misleading intentionally could constitute fraud and you might be held accountable in a court of law and punished with imprisonment or fine finally on the last page number 21 talks about our fees so there is a program fee this is an enrollment fee of 500 to get into the program this is due when you close on your home and finally there's an administration fee this is our annual fee this is charged every year in january it's 100 it's not due until march and the reason for that is we want you to have an opportunity to file your taxes first our policy is that for any year if for some reason you don't get to use the mcc tax credit on your taxes that is you're not benefiting from the program in that particular year we will waive this fee for you all you need to do is send us a copy of your 1040 from your taxes for that year we'll double check to make sure you didn't use the fee and then we'll waive or the credit and then we'll waive this 100 fee so once you're in the program you should only ever be making money so this document requires a date and a signature on it and it will need to be notarized moving on exhibit b this can be filled out now if you are closing within the next couple of weeks if you're not closing for a few months then please hold on to this and fill it out just a few weeks before closing this document is to verify that none of the details in the original application a have changed so since we just filled out a if you're filling out b right now nothing has changed so you'll put your name at the top and go ahead and skip the reference number column we don't use that number two will be the date that you signed the original application so in our case if you're filling this out today it would be today's date number three you will either initial next to a or b if you've filled out the regular application today then you'll initial next to a that there has been no changes in the original application if you filled it out a couple of months ago and there have been significant changes so for example the details of your loan have changed somebody has been taken off of your loan say a co-borrower or maybe a co-borrower has been put on your loan if something substantial has changed like that let us know you'll initial next to b and then write those changes here number four you will initial next to have not this second line that you have not had an ownership interest in a present principal residence in the last three years this is that first time homeowner requirement unless of course you did own a home and you are qualifying as a veteran or because you're purchasing in a targeted area if that's the case you'll initial before half numbers five six and seven are repeated from the prior documents so five and six remind you that your information is being gathered to make sure that you're eligible for the program and any intentional material misstatement could be considered fraud and you could be held accountable for it and number seven reminds you of our 100 annual fee so this document also will require today's date and a signature at the bottom and will need to be notarized finally the last two documents exhibit f informs you that there is the potential for any mcc credit that you claim over the next nine years to be recaptured if you sell your home in those first nine years so this first document is just a notice that it's possible so you'll sign in date here signifying that yes i have been told that that is possible and the next document explains the details of those recapture taxes and and i'll explain to you why you shouldn't necessarily be concerned about it so this last document exhibit g these are the details of the recapture tax so the recapture tax is put in place in order to dissuade investors from utilizing this program to essentially make extra money from the government on top of what they're already making from an investment in a home so the mcc credit is designed to encourage home ownership and to make homeownership more affordable and it's geared towards people who are actually residing in the homes it's not meant to be an investors or a business tax credit so one of the ways that the government sort of watches out for that is they're looking for they might be red flagged if they see that a home has been sold relatively quickly and a huge profit has been made off of it they might think hey this home was being flipped not used as a residence so this doesn't happen very often that people are flagged or audited and then charged this recapture tax in fact i believe it's only happened once in the history of our programs um mcc certificates so out of 5 000 or so certificates that have been issued between the mid 1990s and today only one person has been charged to recapture tax and this was an investor in scottsdale so it's very rare but it could happen now it will only happen if one you make a large profit on your home and two you um your income changes and you have an increase in income significantly so here's what the income would have to be um for a family of two or more or two or fewer and then three or more and then in particular years so from the first year on down to the ninth year of living in your home when it's sold so let's say you sell your home in the third year that you're living in it you will have to make at least seventy eight thousand six hundred dollars if you're a family of two or fewer or over 90 400 for a family of three or more in order to even be eligible for the recapture tax but then you'd also have to make a huge profit on your home and what gets subtracted from profit when i say huge profit that doesn't include things like your realtor's fees or depreciation on the home or any money that you've put into the home in order to improve it so um so it's harder to come up a huge profit than you might think since all those things get subtracted from it but let's say that both of those things apply to you you happen to make a huge profit which is great and you also happen to have had say pay increases and you for some reason get audited and the federal government wants to charge a recapture tax if that happens our pima county ida has issued this sort of personal guarantee on it that they are willing to reimburse anybody who happens to be unlucky enough in order to get a recapture tax levied on them so it's very rare but it could happen but if it does happen then you can get reimbursed by our pima county ida so um this document you don't need to fill anything out in it all you need to do is sign in date at the bottom so this concludes our application um all four parts if you have any questions please go ahead and forward them to mcc at cic tucson.org or you're welcome to call us at 520-462-4622 please go ahead and send these upload these forms to our website you should have been provided a link in your email so i hope you have a great afternoon thank you