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Housing Finance AuthorityProgramsLender Frequently Asked Questions (FAQs)
Lender FAQs
  • When would you need our company’s contact information to become a registered/participating lender?
    An entity becomes a participating lender once the Participation Agreement is fully executed. An approved lender may have multiple contacts listed on the program Web site but that information is not required to become a program participant.
  • Would you just need one name or may we provide you a few branch offices and loan officers’ names?
    Participating lenders may supply numerous listings for branch offices and officer names. Although the HFA’s Lender’s List must be updated at least annually, the intent is the list will be updated as each HFA Board meeting is held and potentially more frequently during the initial phase of the Program.
  • How soon can lenders start using the MCC program?
    To participate in the program, lenders review the Mortgage Credit Program Manual, sign and submit the Mortgage Credit Certificate Program Agreement ​and be approved by the Housing Finance Authority.
  • Is there a section that discusses the Reps and Warrants?
    There is not a specific Reps and Warrants section within the participation agreement or program manual. In addition to an executed participation agreement, each participant/lender will also be required to execute a Lender Certificate, Lending Best Practices Affidavit and Closing Affidavit for each MCC application. The aforementioned documents are available within Tab 8, Tab 9 and Tab 10 of the Program Manual.
  • There are a series of forms in the MCC Program Agreement requiring Lender signature. Must each of these forms be executed and submitted with each reservation/file or will the initial executed forms submitted with the first reservation/file cover the subsequent reservation/files?
    Other than the original Participation Agreement, each form must be submitted with each reservation/file since the form is specific to the individual transaction.
  • The property is located within a targeted area. Does the applicant still need to provide three years' tax returns?
    No, however, the participant must still verify household income to ensure program eligibility.
  • The loan has already closed, but the buyers forgot to attend the Homebuyer Education class. Can they take the class after closing?
    No, you must submit a Homebuyer Education completion certificate dated prior to closing.
  • What is the maximum tax credit available?
    The maximum tax credit cannot exceed $2,000.00 annually for MCC rates in excess of 20%. MCC's issued at a rate up to 20% do not have a cap.
  • If a borrower is purchasing with a non-occupying co-borrower, is the primary borrower still eligible for the tax credit?
    A co-borrower will not affect eligibility. There is however, an additional form for the co-borrower's signature that will need to be executed at closing.
  • If the borrower can’t provide a current year’s tax return because they filed an extension, can they still attempt to qualify?
    Yes, they can submit a copy of the filed extension and a copy of a current rental lease (or if living with relatives, a notarized letter stating their non-rental living situation).