NOTICE OF MORTGAGE CREDIT CERTIFICATE PROGRAM
The Mississippi Home Corporation (the “Corporation”) announces its Mortgage Credit Certificate Program (the “Program”). Section 25 of the Internal Revenue Code of 1986, as amended (the “Code”) authorizes issuers such as the Corporation to issue Mortgage Credit Certificates (the “Certificates”) in lieu of qualified mortgage bonds. Certificates entitle qualifying individuals to a credit against the individual’s federal income tax. The amount of the credit is determined by multiplying the Certificate’s credit rate by the taxpayer’s taxable yearly payments on the mortgage loan for the taxpayer’s “principal residence”. For an individual to claim the credit provided by the Code, the Certificate must be a qualified mortgage credit certificate issued pursuant to a qualified mortgage credit certificate program. The Code sets forth the following requirements for the Corporation’s Program:
Principal Residence Requirement
Unless the Certificate is issued in connection with new construction of a conventional residence, the home buyer must use the residence as his or her “principal residence” within sixty (60) days after the Certificate is issued. The Certificate holder must notify the Corporation if the residence ceases to be his or her “principal residence”. A manufactured home qualifies as a “principal residence” if it (1) has a minimum of four hundred (400) square feet of living space, (2) has a minimum width more than one hundred two (102) inches and (3) is of a kind customarily used at a fixed location.
New Mortgage Requirements
While the Certificate may be used for purchase of a new or existing Principal Residence, Certificate cannot be issued in conjunction with the assumption, replacement or refinancing of an existing mortgage. However, a Certificate can be used in conjunction with the replacement of construction period loans, bridge loans, or other temporary initial financing with a term of twenty-four (24) months or less.
Three-Year No Prior Home Ownership Requirements
The homeowner cannot have had any present ownership interest in a Principal Residence at any time during the preceding three years, ending on the date the certificate is issued. This three-year, first-time home buyer requirement need not be met if the residence for which the home buyer seeks a mortgage loan located in a designated “targeted area.” “Targeted areas” are certain specified portions (counties and part of counties) of the State of Mississippi (the “State”) determined or approved by the federal government to receive special stimulus to housing. A complete listing of “targeted areas” in the State can be obtained by contacting the Corporation.
Purchase Price Requirements
Certificates may be used only in conjunction with the purchase of a Principal Residence whose price does not exceed certain specified amounts. The maximum allowable purchase prices vary based upon location, whether the Principal Residence is in a target or non-targeted designated area. The maximum purchase prices at this time are:
County Target/Non-Target Acquisition Limits
Target Designations –
$332,000
Non-Target Designations –
$275,000
Home Buyer Income Limits
Home buyers eligible for the credit afforded by the Certificate must have family income at or below the income limit for the county in which the Principal Residence being purchased is located, considering family size and whether the Principal Residence being purchased is located in a target area. Current maximum income limits range from $71,800 to $119,420. A complete listing of income limits can be obtained by contacting the Corporation.
Method by Which Certificates Are Issued
Prior to the mortgage loan closing, the participating lender must submit to the Corporation an Application Certification and supporting documents. The Corporation will review these documents and either reject or accept the application. At the mortgage loan closing a Closing Affidavit is prepared and sent with supporting documentation to the Corporation. After final review and approval, the Corporation will issue the home buyer a Certificate, allowing him or her to claim the credit on future tax returns.
The Corporation will begin accepting applications for Certificates on and after March 21, 2024.
Additional-Information
For further information contact: Nedra Patton, Mississippi Home Corporation, 735 Riverside Drive, Jackson, Mississippi 39202, or phone (601) 718-4642.