mcc program eligibility requirements 
Eligible Borrowers
Applicants for the Mortgage Credit Certificate (MCC) Program must meet OHFA income limits. Check income limits.
To qualify for an MCC, a buyer must also:
- Meet one of the following:
- Be a first-time homebuyer—someone who has not owned or had an ownership interest in his/her principal residence in the last three years,
- Purchase a home in a target area—an economically distressed area designated by the U.S. Department of Housing and Urban Development (HUD), (download Ohio's target areas from our download center or visit our target area maps page), or
- Be a military veteran who has received an honorable discharge.
- Occupy the property as the primary residence for every year the borrower claims the MCC. If the property ever ceases to be the borrower's primary residence, OHFA may revoke the MCC approval.
- Qualify for the loan being requested. Borrowers must meet standard credit and underwriting criteria established by the IRS and HUD for the MCC Program. See IRS Publication 530.
Eligible Properties
Qualifying properties must meet OHFA purchase price limits. The limits vary by city and town. Check purchase price limits.
Properties must also be:
- New or existing single-family units, condominiums, and planned unit development homes within the State of Ohio.
- Modular or manufactured homes must be permanently affixed to the foundation and titled as real estate to be eligible.
Eligible Mortgages
- Only new purchase mortgages are eligible for the program. The MCC Program cannot be used as a refinance option on an existing mortgage. However, it can be used to replace a construction loan or bridge loan up to 24 months. The borrower must provide an affidavit stating the MCC loan does not replace an existing mortgage.
- Adjustable rate or interest only mortgages are not permitted.
- The MCC Program cannot be used in conjunction with any OHFA First-Time Homebuyer Program funded with tax-exempt mortgage revenue bonds.
- Mortgage terms must be reasonable. If the mortgage rate is 100 basis points or more above the current Freddie Mac Primary Mortgage Market Survey® (PMMS®), OHFA will deem the mortgage commercially unreasonable.
Other Requirements
- Loan Fee: Lenders will pay OHFA a $300 fee per loan, which may be assessed to the borrower. Any miscellaneous non-third party fees, excluding OHFA fees, may not exceed $500, including but not limited to underwriting, rate lock, processing, and commitment.
- Lender Participation Fee: Each participating lender must pay OHFA a one-time program participation fee based on the lender's assets:
- Under $500 million in assets–$750
- $500 million to $1.5 billion in assets–$1,000
- More than $1.5 billion in assets–$2,000
- Reservations Required: MCCs are available on a first-come, first-served basis and are not transferable.
- OHFA will begin accepting applications for MCCs from participating lenders for qualified homebuyers with purchase contracts dated on or after February 17, 2009.
- OHFA will issue MCCs for loans closing on or after March 23, 2009.
- Fair Housing: Appropriate Fair Housing advertising is required.
- Recapture Tax Provision: If a borrower sells the residence within nine years of the date of closing, the borrower may owe recapture tax if the household income has increased more than the amount allowed under the Internal Revenue Code. More information on recapture tax.
