IHDA Launches $99 million of MCC Programs!!!!

The Illinois Housing Development Authority (IHDA) is pleased to announce three Mortgage Credit Certificate (MCC) Programs and an increase in the IHDA Community Partner Credit Certificate Program:

• The Illinois G-I Home Credit Program
• The Decatur G-I Home Credit Program
• The I-Loan Certificate Program
• The IHDA Community Partner Credit Certificate Program

Mortgage Credit Certificates (MCCs)
The Federal government allows each homeowner to claim an itemized income tax deduction for the amount of interest paid each year on a mortgage loan. The Mortgage Credit Certificate enhances this benefit. Homeowners with a MCC are allowed to use 20% of their annual mortgage interest as direct federal tax credit, resulting in a dollar for dollar reduction of their annual federal income tax liability. The remaining 80% of their annual mortgage interest will continue to qualify as an itemized tax deduction. See THIS EXAMPLE.

The borrower is required to be a first-time homebuyer. In the two G-I Programs there is an exemption for Veterans who qualify. All of the programs have the same income and purchase price limits. These current limits may be found on our website www.ihda.org.

The Illinois G-I Home Credit Program

The Illinois G-I Home Credit Program is a statewide joint effort of three State agencies: the Illinois Housing Development Authority (IHDA), the Illinois Finance Authority (IFA) and the Illinois Department of Veterans Affairs (IDVA). This initiative builds on financial assistance available in the State under the MCC Program designed for our Military Veterans and Active Duty Service Personnel.

The Illinois G-I Home Credit Program for Veterans and Active Service Personnel will offer a valuable annual federal income tax credit with the purchase of a primary residence for as long as the household remains in the property. This credit reduces the amount of federal income tax the borrower must pay.

Program Benefits:

Qualifying applicants enjoy the following program benefits:

• Dollar-for-dollar reduction in annual federal income taxes, equal to 20% of annual mortgage interest.
• The remaining 80% of the annual mortgage interest will continue to qualify as an itemized tax deduction for the household. The specific dollar amount of the tax deduction depends on how much interest the borrower pays on the home purchase loan.

The Illinois G-I Home Credit Certificate can be used with any type of conventional mortgage loan. In order to assure financial stability for new homebuyers, participants are encouraged to seek fixed-rate, amortizing loans for a 15 to 30 year period. The G-I Home Credit Certificate can also be matched with FHA and VA loans. The G-I Home Credit Certificate cannot be used in conjunction with the Illinois Housing Development Authority’s I-Loan or any other mortgage loan financed with tax-exempt mortgage revenue bonds. The Illinois G-I Home Credit Certificate Program is part of the federal Mortgage Credit Certificate Program (MCCs).

Program Eligibility:

• Veterans who have served in active duty and have been honorably discharged. Veterans DO NOT have to be a first-time homebuyer.
• Active service personnel (including active duty members and National Guard Reservists) who are first-time homebuyers or persons who have not owned a principal interest in a residence in the past 3 years.
• Maximum annual income of household members may not exceed certain federally established income limits based on the county in which you live.
• Maximum purchase price may not exceed certain federally established purchase price limits based on the county in which you live.

Program Criteria:

• The MCC will be reserved for qualified purchasers whose loans close February 4, 2009 and later
• Property must be owner-occupied
• Property must be primary residence
• Program will terminate on use of all available credits or at the discretion of IHDA
• Borrower must have available the following:

                   -  Home purchase Sales contract

                   -  Federal Income Tax returns for the past three years, and any other documents required by the lender

                   -  DD214 if borrower needs the exemption from the first time buyer requirement

Income and Purchase Price Limits:

Income and purchase price limits vary depending on location. See limits at www.ihda.org under Home Ownership Programs.

Participant Eligibility:

Veterans and active duty Federal military personnel. National Guard and Enlisted Reserves must have been federally activated to duty for purposes other than natural disasters or domestic civil disturbances to qualify.

Participant and others household members listed on the mortgage are subject to credit review.

Property Eligibility:

• Must be the borrower’s principal residence
• 1 or 2 unit properties

For more information on the G-I Home Credit program, see THIS PDF.

The Decatur G-I Home Credit Program

The Decatur G-I Home Credit Program has the same criteria as the Illinois G-I Credit Program except the Veteran or Active Duty Service Personnel must be purchasing a home within the City of Decatur.

This Program is effective with loans closed February 4, 2009 through June 30, 2009.

The I-Loan Certificate Program

The I-Loan Certificate Program is a Statewide MCC Program. This Program follows the guidelines of other MCC programs IHDA has initiated. Purchase price limits, income limits and other criteria that are required in our first-time homebuyer program do apply.

For a list of IHDA partner lenders, see THIS LINK.

The IHDA Community Credit Certificate Partner Program

The IHDA Community Credit Certificate Partner Program is designed for municipalities that cede volume cap to IHDA to establish an MCC program designed for the residents of that community. The same guidelines as the above Statewide Program are in effect. The exception is that the purchased home must be in the designated community. The MCC will be reserved for qualified purchasers whose loans close December 10, 2008 and later. The communities presently in the program are listed below.

• Arlington Heights
• Aurora
• Bloomington
• Champaign
• Downers Grove
• Joliet
• Normal
• Skokie
• South Holland
• Sycamore
• Urbana
• West Chicago
• Macoupin County

Availability of funds is on a first-come basis for homes purchased in the above communities as the principal residence of the borrower.

These programs all have purchase price and income restrictions. Terms and conditions may change or be terminated at a future date. Please check the IHDA website at www.ihda.org for current information.