How to Originate, Process and Underwrite an MCC Reservation

Lender Reference Guide to the Homebuyer Tax Credit Program
1
Form MC-23
Rev. 6/16/14
How to Originate, Process and Underwrite an MCC Reservation
To qualify for a Homebuyer Tax Credit the approved Utah Housing (UHC) Lender must request a Mortgage Credit
Certificate (MCC) from Utah Housing Corporation on behalf of an eligible homebuyer.
Because the MCC is a tax credit, for ease of explanation to the potential homebuyer, UHC will refer to the MCC as the
Homebuyer Tax Credit (HTC) program.
Step 1: Be an Approved MCC Lender
1. The MCC Applicant (holder of MCC) cannot be related to an individual with 50% or more ownership
in the entity.
2. Third Party Originators must sign Thirty Party Originators Reps and Warrants.
Step 2: Verify the Homebuyer is Eligible for the HTC
1. Encourage borrower to view the “Learn About” material on UHC’s Homebuyer website
2. Remind borrower to refer to their tax advisor to determine if the tax credit is the right option for them and
to discuss Recapture Tax scenarios.
3. Meet the requirements listed in the UHC Homebuyer Tax Credit Program Guide, Section 4. Verify
Borrower(s):
Are a first-time homebuyer (or property is in a targeted area),
Will occupy the residence as their primary residence,
Loan will be an eligible mortgage loan (30 year, fixed rate, approved UHC, FHA, VA, USDA,
Conventional mortgage loan). UHC’s FirstHome Loan program is not eligible for the HTC
Residence is a SFR and meets eligibility requirements (i.e. acreage limitations),
Income does not exceed Household Income Limits (all household members 18 and over),
Purchase Price does not exceed Purchase Price Limits,
4. View the Tutorial on the Homebuyer Tax Credit on Lender web-page for detailed information.
Step 3: Have borrower complete and sign the following forms before submitting to UHC for an
MCC Reservation:
a.
b.
c.
d.
e.
f.
Homebuyer Tax Credit Application Disclosure (Form MC-01) – borrower signs at application
Qualifying Borrower(s) Income Certification (Form MC-03) – borrower signs
Borrower Affidavit (Form MC-05) – borrower signs
Seller Affidavit (Form MC-13) – seller signs
Recapture Summary (Form MC-06) – borrower signs
Application (Fannie Mae Form 1003) – borrower and loan originator signs
Step 4: Underwriter reviews the loan package to verify the loan meets the MCC requirements:
a. Underwriter completes and signs Income Certification(Form MC-04) – mortgage underwriter signs
b. Approves mortgage loan