powerpoint presentationmbba-nh.org/wp-content/uploads/2016/09/module-4... · just what is an mcc?...

2016

New Hampshire Housing

Back ground

• In 1981, recognizing a serious shortage of

decent, affordable housing for low income

families and elderly persons, the New

Hampshire General Court (legislature)

established the New Hampshire Housing

Finance Authority, a public benefit

corporation

Important information

• Although established by the state legislature, New Hampshire Housing is an independent self sustaining authority, not a state agency.

• New Hampshire Housing is an instrumentality of the state.

New Hampshire Housing:

our mission

• To promote, finance and support affordable

housing opportunities and related services for

the people of New Hampshire.

Mission in simpler words

• To help create housing that is affordable to low- and moderate-income people

• To provide a continuum of services from Rental Assistance for very low-income households to Homeownership programs for low- to moderate-income households

• To support Ne Ha pshire’s real estate se tor and thus the general economic growth and development of the state

While everything about

New Hampshire Housing is important

the most important part to you is

•Homeownership o let us e plai the REASON’s h

Helpful steps for potential borrowers

• Step 1

• Ideally your borrower

should start the home

buying process with

– Homebuyer Education

– REALLY have you met

ED!

– Available at

www.GoNewHampshire

Housing.com

• Step 2

• Choose a lender –– Connie Venience can help

• They will explain our

Ma Optio s available

– Great programs

– Funds available to help

with closing costs and or

down payment

– Funds to rehab a property

– Easy guidelines

Current Programs

• Home Flex

• Home Flex Plus – gives you 3% to use towards down payment or closing costs – no payback

• Home Flex Rehab Programs – FHA or RD two great programs to make your all most dream home a reality

• Home Preferred – best conventional program going really low mortgage insurance

• Home Preferred no mi – who could ask for more!

Almost there!!

• Step 3

– Finding the dream home

and sealing the deal

– Ok let’s he k off here we are at this point:

Home buyer education

Picking a lender and

getting pre-qualified

Working with a great

Realtor

Fi di g that al ost dream home

All set lets close – BUT

WAIT you almost forgot!!

Home Start Homebuyer Tax Credit

• DO NOT miss out on this opportunity!

• Make sure you have a reservation for an MCC before you sign the closing documents

• After the closing it is too late

• Do not miss the opportunity to get up to $2,000 a year tax credit!!

Just what is an MCC?

• The Homebuyer Tax Credit is an MCC.

• Homebuyer Tax Credit is issued with the underlying mortgage.

• It can provide up to $2,000 in reduced tax liability each year

provided the homeowner has a mortgage and continues to

live in the home.

• The potential tax savings can be used to boost the

homebuyers take home pay.

• In qualifying eligible borrowers, lenders may consider the tax

sa i gs as a oost i eligi le orro er’s i o e.• It’s simple really check it out……………

Borrower Qualification Worksheet

Eligible Homebuyer

Are you a first-time homebuyer or purchasing a home in a Targeted Area? Yes

Will the home be your Principal Residence? Yes

Is your annual household income at or below the MCC Income Limits? YES

Eligible Property

Is the home you wish to purchase a single-unit property? YES

Is the ho e’s pur hase pri e at or elo the MCC Pur hase Pri e Li its? YES

Eligible Mortgage

Is the mortgage loan that you qualify for a fixed-rate or eligible adjustable

rate mortgage that is fully amortizing? YES

Your Ability To Use The MCC

Do you generally expect to have federal income tax liability? YES

Estimate Your Potential Homebuyer Tax Credit!

Amount of your first mortgage $ _150.000___

Interest rate x ____4.5__%

First year interest paid(estimated) = $ _6,750.00

MCC tax rate x ____35 %

Reduced federal tax liability* = $ _2,362.50_(Capped @ $2,000)

Calendar year/months divided by12

Monthly savings = $ _166.67______________

* The amount of the tax credit benefit may not exceed $2,000 in any given tax year.

OK that sou ds eas , ut do ’t these programs have a lot of red tape?

• Simply stated NO

• We have a couple of overlays:

– 620 min credit score

– 50 DTI

– Income limit $115,500 who ever is signing the

note

• That’s it!

Quiz – a e these Reaso ’s

Homebuyer Education

• Live classes available

throughout the State

• Online classes now

available at

• www.GoNHHousing.com

• Go ahead check it out!

This is a great resource

for your borrowers.

Thank You, now you

have The Reasons

too!