FOR IMMEDIATE RELEASE: Mortgage Credit Certificate Program Reopened

July 30, 2009

Source: Frank Mortl, III
Job Title: Chief Executive Officer
Phone: (269 382-1597

Kalamazoo, Michigan: The Greater Kalamazoo Association of REALTORS® (GKAR) announced today their support of the Michigan State Housing Development Authority's (MSHDA) reactivation of the Mortgage Credit Certificate (MCC) Program.

The MCC Program, authorized by Congress in the 1984 Tax Reform Act to provide housing assistance by allowing a federal tax credit to new, qualified homebuyers, was reopened by MSHDA on July 13th and is made available through participating Lenders on a first-come, first-served basis throughout the State of Michigan.

To qualify for the housing assistance, homebuyers cannot have had an ownership interest in a principal residence in the last three years; the home must be a single family residence and used as a principal residence; and, because a tax credit is considered to be a subsidy, homebuyers may be subject to a federal 'recapture tax'. This tax may apply, if the home is sold within nine years with a gain on the sale.

"Although eligible borrowers must meet MSHDA income and sales price limits, the MCC will significantly reduce the amount of federal income tax a homebuyer pays" says John Jackson, a REALTOR® and Associate Broker with Prudential Preferred REALTORS® of Kalamazoo. "The estimated annual cost savings is calculated on a monthly basis to help homebuyers qualify for a higher mortgage payment, and therefore a higher priced home - which expands home choice options and promotes a positive trickle up effect in the overall housing market."

Homebuyers taking advantage of the MCC Program may qualify for 20% of their annual mortgage interest paid to be credited against their year-end tax liability. This is not a one-time tax credit, but can be utilized each year until the original mortgage is paid in full as long as the property remains the homebuyer's primary residence. Additionally, qualifying homebuyers must apply for the MCC Program through a participating Lender. A list of banks, credit unions and mortgage companies who work with the MCC Program can be found at the MSHDA website:

GKAR encourages anyone interested in the purchase of a home to contact a local greater Kalamazoo REALTOR® for more information on homebuying opportunities and the advantages available to both new and trade-up buyers. For more information on the many reasons to consider the purchase of a home in the greater Kalamazoo area, visit or contact the GKAR office at 269.382.1597.

Frank Mortl, III
Chief Executive Officer
Greater Kalamazoo Association of REALTORS®
5830 Venture Park Drive
Kalamazoo, MI 49009
269.382.1597 / /


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