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So, I purchased a home back in May, first time buyer. I went with the CHFA Advantage loan and had intended on getting the MCC for the tax credit. When I was shopping for lenders I went with what my real estate agent suggested because he was really on top of everything and responsive. I received a purchase breakdown showing the loan amount, monthly payment, closing costs etc. Included on this sheet was a charge for the MCC processing which is $250, which I was glad I saw because I knew I wanted that. Me, being a first time buyer, failed to realize that there is extra paper work to be filled out for the MCC on the HUD-1 document. I didn't think anything of it since it was shown on the purchase breakdown. So, tax season rolls around and I'm wondering how I use the MCC on my tax return (since I didn't really have a certificate). I asked my lender and he told me that he contacted CHFA and they said they would mail my certificate out and I should see it in a couple of days. So I wait a couple weeks, I'm a fairly patient person, I don't see it so I contact CHFA. They tell me there is no MCC in my file and that once the loan is closed there is nothing I can do. I'm furious so I contact my lender to try to figure out what happened. He says that it was never added to my loan because we never talked about it (at least in emails we didn't). I thought we had at least discussed it briefly on the phone once or twice, but since there are no emails discussing the matter, I know I don't really have anything to go off of there. He understands the confusion and wants to make it right, but I'm out about $7k in my first 5 tax years with that credit and he's now trying to convince me that the MCC is a deduction and not a credit and that it would only get me about $234 in my first 2 tax years, so not sure if he doesn't know much about the MCC or if he's trying to pull one over on me. I feel cheated and I would like to be compensated, just not sure how or what my options are at this time. I'm aware of the CFPB and will utilize their services if necessary, Just wanted more opinions on the matter. Sorry for the lengthy post
Get out your HUD 1 statement. Do you see a CHFA 2nd, a MCC credit? anything? Did you get an FHA loan?
(CHFA is Colorado Housing Finance Authority)
I looked through it and nothing on the HUD 1 about MCC... I should have known to look for it but being a first time home buyer I didn't know better and didn't know how that whole side of the process went. It's the CHFA Advantage loan so it's a conventional 3% down with no PMI
Unfortunately, your lack of knowledge and lack of persistence about the MCC lead to you not receiving it. Live and learn. I dont see how the lender was deceitful, they simply didn't follow up on it because you didn't push the issue.
I cant say it often enough, when making the largest purchase of your life, people need to educate themselves and look out for themselves. I agree, a MCC is very valuable, if it was important to you, you should have known it required additional paperwork ahead of time.
Never count on everyone else to look out for you, only you can do that. And you can do that with knowledge before you sign anything.
When I was shopping for lenders I went with what my real estate agent suggested because he was really on top of everything and responsive.
Is it possible your conversations were with your Realtor and not the loan officer? Do any of your conversations via email with the Realtor talk about your wishes? If this Realtor/loan officer relationship is like most, they talk several times a week, sometimes, each day. I think you need to talk to the Realtor, ask him what he/she recalls and then file your complaint.
The purpose of the call is two-fold: it will give you an idea how your agent is going to play it, and, it will alert him he/she may want to provide more than one name.
Is it possible your conversations were with your Realtor and not the loan officer? Do any of your conversations via email with the Realtor talk about your wishes? If this Realtor/loan officer relationship is like most, they talk several times a week, sometimes, each day. I think you need to talk to the Realtor, ask him what he/she recalls and then file your complaint.
The purpose of the call is two-fold: it will give you an idea how your agent is going to play it, and, it will alert him he/she may want to provide more than one name.
Yeah, I thought about this. Honestly I was talking to so many lenders that the conversations sort of blur into one. Seems my realtor is no longer in the business and I don't have a way to contact her.
Unfortunately, your lack of knowledge and lack of persistence about the MCC lead to you not receiving it. Live and learn. I dont see how the lender was deceitful, they simply didn't follow up on it because you didn't push the issue.
I cant say it often enough, when making the largest purchase of your life, people need to educate themselves and look out for themselves. I agree, a MCC is very valuable, if it was important to you, you should have known it required additional paperwork ahead of time.
Never count on everyone else to look out for you, only you can do that. And you can do that with knowledge before you sign anything.
I agree, I should have been more persistent about it. The fact remains that the lender including the MCC charge on the purchase breakdown by default is a flawed process... Especially when the breakdown is advertised as "100% accurate". I know why it's done, because they can take the charge off on the GFE and the buyer is excited that closing costs came out a little cheaper than on the breakdown. Fact is, my lender didn't want to do the MCC because of the additional paperwork and no additional commission. I feel he wasn't looking out for my best interests in the matter.
Oh well, live and learn... I'll make more money, this just stings a bit.
Were there strings attached to that credit? Have to stay there for a certain period of time? Can't sell for xx years? FWIW, I think you have the right attitude with moving on. Things have a funny way of happening, and it's very possible, this too, happened for a reason. Plus, getting mad and upset only hurts you.
Were there strings attached to that credit? Have to stay there for a certain period of time? Can't sell for xx years? FWIW, I think you have the right attitude with moving on. Things have a funny way of happening, and it's very possible, this too, happened for a reason. Plus, getting mad and upset only hurts you.
No, I don't believe there are any stipulations like that on the MCC. The mortgage program (3% down, no PMI) is also through CHFA and I believe that might have some stipulations like that.
I'll have to do a little more research but I think I can refi to a lower rate with CHFA once my LTV hits 90/10. At this point I think you can add the MCC on the refi... So who knows, might still be okay.
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