Usher Financial Group Is One Of The Few Lenders Authorized To Offer "The Mortgage Credit Certificate (MCC)".

The Portland Housing Bureau (PHB) offers eligible homebuyers in Portland the opportunity to get an ongoing federal tax credit through what is called a Mortgage Credit Certificate (MCC). An MCC is a IRS-approved tax credit, which reduces their federal income taxes owed as long as they keep the loan and continuously occupy the home as their principal residence. The tax credit helps the homebuyer increase their disposable income and therfore more comfortably afford their monthly house payments. The maximum amount of the MCC tax credit equals 20 percent of the annual mortgage interest paid on the homebuyer's first mortgage loan.

The following example shows how the amount of the MCC tax credit is calculated. This example assumes the homebuyer gets a 30-year mortgage of $250,000 with a 6.0% interest rate. Based on these assumptions and for educational purposes only, here is how the MCC tax credit would be calculated:

Example of a MCC Tax Credit Calculation 

The amount of the annual tax credit is then deducted from the homebuyer’s total tax liability when they file their taxes. In the event that the homebuyer is not able to take the full amount of the credit in a particular tax year— it can be carried forward for up to three years.   The above example is not an actual offer of credit and the actual amount of the MCC tax credit received will vary considerably depending on the amount of the homebuyer’s loan, their interest rate and the term of the loan.

Eligibility Requirements

Eligible Homebuyer

• First-time homebuyer, which is defined as not having owned a home in the past three years; this rule is waived if the property is located in a “MCC Target Area” (PDF)
• Annual borrower and co-borrower income limits are as follows:
      1-2 Persons-$71,200
      3 or more persons-$81,880
• Must meet first mortgage lender’s criteria for underwriting, credit and down payment requirements with an approved MCC lender (see list below) 
• Must occupy property as “principal residence” within 60 days of the purchasing the home
• Must complete a HUD-Certified homebuyer education course prior to loan closing

Eligible Property

• Must be located within the Portland city limits (verify eligibility on www.PortlandMaps.com)
• Must remain owner-occupied to be eligible to continue taking the credit
• Single-family units only, including condos and town homes
• Maximum purchase price - $454,909 city-wide

Please call or email us to learn more about the program and if it is right for you.