First-Time Homebuyer Credit? (Cary: mortgage, loan, buying a home)

[jd22]

Hi. I am hoping someone can help me. I am in the process of buying a home in Cary and I just found out about the first-time homebuyer program in NC (MCC- Mortgage Credit Certificate). I am married but I am the only one on the loan. My husband bought a house before we were married. I am not on the deed and we have not lived there in over three years. I meet the income requirements in Wake. My lender is saying I don't qualify because we filed a joint tax return but the people at nchfa.com say they believe that I do. I met a neighbor recently that just so happened to be a mortgage person and he doesn't see why my lender is saying this. Does anyone know who is right based on this information or advice on how to proceed?

Thanks!

[MainLineMommy]

Are they saying you don't qualify because of the 3-year ownership rule, or the income limitation?

For the 3-year ownership rule: The exact wording of the law is that a co-borrower "has not had an ownership interest in a principal residence during the three-year period ending on the date the Deed of Trust is executed, unless the residence purchased is in a Targeted Area or meets one-time Veteran exemption." Which sounds to me like his name would also have to be OFF the deed, regardless of whether or not he has lived in the house in the past three years. If his name is still on the deed, it looks like he is not an eligible co-borrower for the credit.

For the income limitation: The income of all household members who are 18 years of age or older (except full-time dependent students) must be included in the total annual income calculation, whether or not they will execute the promissory note. Individuals who intend to occupy the property at a future date are also included (i.e. a fiancé).

So it doesn't matter whether or not he is on the loan. If he is going to occupy the house, his income has to be included in the income limitation calculation.

[RedZin]

Originally Posted by jd22

Hi. I am hoping someone can help me. I am in the process of buying a home in Cary and I just found out about the first-time homebuyer program in NC (MCC- Mortgage Credit Certificate). I am married but I am the only one on the loan. My husband bought a house before we were married. I am not on the deed and we have not lived there in over three years. I meet the income requirements in Wake. My lender is saying I don't qualify because we filed a joint tax return but the people at nchfa.com say they believe that I do. I met a neighbor recently that just so happened to be a mortgage person and he doesn't see why my lender is saying this. Does anyone know who is right based on this information or advice on how to proceed?

Thanks!

Per their web site, household income cannot exceed 85k. Your husband is a part of your household, even if he's not on the loan. And once you buy a house, he owns part of the house, even if he's not on the deed (that's how things work in NC... you can buy a house by yourself, but if you are married, you cannot sell it without your spouse signing off on the sale).

The lender is going by your tax documents, which show your household income. That is why the lender thinks you are not eligible for the MCC. I'd call NCHFA and ask, personally.