First Time Buyers

Home at Last Mortgage Credit Certificate Program

1. Acquisition Cost Limits(Subject to Reduction by any applicable FHA limits):
   1. Carson City                                                                              $358,875
   2. Douglas, Storey and Washoe Counties (except city of Reno)     $429,619
   3. Elko & Nye Counties                                                               $292,500
   4. Lyon County                                                                            $298,125
2. Income Limits (Maximum Household Income):
   1. Carson City

1. 2 or fewer person families                                                     $75,720

2. 3 or more person families                                                      $88,340

                  b. Douglas County

1. 2 or fewer person families                                                     $86,640

2. 3 or more person families                                                      $101,080

                  c. Elko County

1. 2 or fewer person families                                                     $66,500

2. 3 or more person families                                                      $76,475

                  d. Storey and Washoe County

1. 2 or fewer person families                                                     $83,400

2. 3 or more person families                                                      $97,300

                  e. Lyon & Nye County

1. 2 or fewer person families                                                     $64,500

2. 3 or more person families                                                      $74,175

      3. No home ownership in the previous 3 years.

      4. Must be a primary, owner-occupied, purchase. No refinances.

      5. Special benefits for military veterans and homes in non-targeted areas.

      6. No Arms-Length Transactions.

      7. Must meet criteria & underwriting of participating lender (FHA, VA, Conv., etc.)

      8. Must itemize deductions on Schedule A of Form 1040.

1.      1:1 Tax Credit. Put other ways, it’s dollar for dollar.

2.      Also can deduct mortgage interest annually less the tax credit taken.

3.      Category 1 Loan gives a 20% tax credit for loans greater than $190K. Max $2k.

4.      Category 2 Loan gives a 30% tax credit for loans less than $190K. Max $2k.

5.      Tax credit in excess of $2k can be carried forward into future tax years.

6.      Can use estimated tax credit savings as income for qualifying.

7.      MCC is transferable to new buyer as long as they meet the eligibility criteria.

8.      Non-Occupying Co-Borrowers do not disqualify primary borrowers. Eligibility is based on occupying borrowers income & housing history.

9.      Can be combined with other 1^st time down payment programs as long as they are not bond loans. WNHC is acceptable.

10.  Can be used to refinance a subprime mortgage (any ARM) originated between 2001 -2007.

1.      Fees in addition to closing fees: 1% of loan amount, $75 lender fee, $100 App fee.

2.      Possible Recapture Tax:

a.       No more than ½ of gain on sale if sold within 9 years and income increases.

b.      See Recapture Tables for each county

3.      If occupancy status changes, MCC can be revoked. (Renting, sub-letting, etc.)

1.      Loan application and pre-approval with participating lender.

2.      Federal tax returns for previous 3 years, signed or certified.

3.      Affidavit of Applicant – Forms found at http://www.nvrural.org/lenders

4.      Preliminary Notice of Potential Recapture Tax

5.      Tax Certificate

1.      Reaffirmation of Applicant - – Forms found at http://www.nvrural.org/lenders

2.      Tax Return Affidavit (with tax returns and W-2’s or information letters)

3.      Affidavit of Seller

4.      Certificate of Lender

5.      Closing Affidavit (with HUD-1 or other forms attached)

6.      Notice of Potential Recapture Tax