Finance
Iowa Housing Finance Authority offers Mortgage Credit Certificate (MCC) programs. An MCC allows eligible buyers to:
AQualify for a mortgage without a credit check
BConvert a portion of their annual mortgage interest into a direct federal income tax credit✓ Correct
CDefer their mortgage payments for up to 12 months
DReceive a grant equal to their down payment amount
Explanation
A Mortgage Credit Certificate (MCC) is a federal income tax credit that allows eligible first-time homebuyers to convert a percentage (e.g.
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Key Terms to Know
Discount Points
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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