Mortgage Credit Certificate Program

Frequently Asked Questions

Who is considered to be a first time homebuyer?

Those persons who have not had an ownership interest in a "Principal Residence" within the last three years. If you have claimed mortgage interest deductions on your tax returns at any time in the previous three tax years you cannot qualify. Please note that you do not have to be considered a first time homebuyer in order to purchase in the target area if you meet income requirements defined as follows.

How much income can I earn to qualify?

The total household income (including the income of anyone who is both residing in the property, responsible for the mortgage and/or any co-mortgagor listed on title) cannot exceed:

1 or 2 person Household $90,300
3 or more person Household $103,845

How do you define Owner - Occupant?

An MCC is not available for property purchased as investment or rental. The program will require you to move into the residence that you are buying within 60 days from the date close of escrow.

What is the cost of the application fee?

A NON-REFUNDABLE application fee of $500 made payable to Alameda County MCC Program. The Reissued Mortgage Certificate (RMCC) also has a NON-REFUNDABLE application fee of $750.

Are there any special Mortgages to which an MCC must apply?

The program can be used with any 30 year fixed rate or qualifying adjustable rate mortgage with a 30 year term. The MCC cannot be used in conjunction with the bond backed loans such as California Housing Finance Authority (CHFA) or Cal Vet bond loans. Refinancing is now permitted for qualified MCC holders through a participating lender.

What happens when I sell my home?

If you sell your residence within 9 years of purchase, you may be subject to a recapture tax.

Lender and County Process

The County does not make home loans. You, the homebuyer, will go through the normal process of choosing a Realtor, finding a home, and arranging financing with one of our participating lenders. The lender will determine if you are eligible, fill out the MCC application forms with you, and send them to the County.