MCC Program Updates - ChaneyBrooks Choice Advisors

MCC Program Updates

The HHFDC just updated their income limits and purchase price limits for the MCC program, effective Monday, April 22, 2019. Attached is the Acquisition Cost Limits document and updated MCC Program Brochure.

For those of you who aren’t familiar with the MCC program, an MCC gives a qualified first-time homebuyer (no primary residence ownership in the last 3 years) a tax credit of 20% of the mortgage interest paid each year. At current rates, that effectively saves them almost 1% on their interest rate.  It also can improve their pre-approval buying power by enough to make the difference between qualifying and not qualifying for a purchase.

A tax credit is much better than a tax deduction, as it reduces your tax liability dollar for dollar. The remaining 80% of your annual mortgage interest continues to qualify as an itemized tax deduction.

For properties on Oahu, the new income limits are up to $139,520 for a family of 2 or less, and $163,240 for a family of 3 or more, while the new purchase price limit is $648,955 in non-targeted areas.

There are certain census tracts, or targeted areas, where the HHFDC has a different income limit (need to contact them for the limit for each area) and an increased purchase price limit of $793,168.

The acquisition cost (purchase price) limits applicable to the MCC Program are as follows:

Non-Targeted Areas

County Newly Constructed or Existing Residence*
Hawaii $348,800
Honolulu $648,955
Kalawao $610,659
Kauai $641,710
Maui $610,659

Targeted Areas

County Newly Constructed or Existing Residence*
Hawaii $426,311
Honolulu $793,168
Kalawao $746,362
Kauai $784,313
Maui $746,362

* Pursuant to federal regulations, there is only one purchase price limit that applies to both newly constructed and existing residences.