First Time Homebuyers County Program
The City of Oakley does not currently offer a First Time Homebuyers Program. Below please find other program assistance in the Contra Costa Area.
MORTGAGE CREDIT CERTIFICATE PROGRAM
The Mortgage Credit Certificate Program, authorized by Congress in the Tax Reform Act of 1984, provides financial assistance to "First time homebuyers" for the purchase of new or existing single-family home. In 1985, the State adopted legislation authorizing local agencies, such as Contra Costa County, to make Mortgage Credit Certificates (MCCs) available in California. Contra Costa County MCC authority can be used in all cities as well as the unincorporated areas of the County. The Contra Costa County Community Development Department will administer the program.
The MCC Program is a homebuyer assistance program. The MCC provides qualified first time homebuyers with a federal income tax credit. Income tax credits reduce an individual's tax payment(s) by an amount equal to the credit. Under the MCC program, the maximum tax credit available is equal to 20 percent of the annual interest paid on the borrower's mortgage. By reducing the borrower's federal tax liability, the tax credit essentially provides additional income which can be used for mortgage payments.
To obtain an MCC, a purchaser of a new or existing single-family home works with any mortgage lender participating in the MCC program and applies for an MCC and a mortgage loan at the same time. Lenders process the underlying mortgage using standard procedures, with adjustments to those procedures as needed to satisfy the MCC requirements. The lender is responsible for underwriting and execution of required State and federal certifications and affidavits. The County reviews executed certifications and affidavits from the lender in order to determine qualification and eligibility of the MCC applicant.
The Contra Costa County MCC Program eligibility requirements are as follows:
MCCs will be available only to "first-time homebuyers", (i.e. not owning a home within the past three years).
As first-time homebuyers complete their normal loan application process with a participating lending institution, their mortgage lenders will prepare MCC applications and forward them to the County. The County will then issue MCCs on a first-come, first-served basis according to when the initial application is received by the County. County staff requires 5-7 days for application review and processing.
Applicants may buy a residence only for their own occupancy, not for rental or reinvestment. Occupancy as "principal residence" must be within 60 days of the close of escrow.
Applicants must pay a non-refundable application fee of $200 at the time the lender applies to the County on their behalf.
The MCC can be used when buying a new home with a maximum purchase price of $629,005, ($768,784 in Target Areas) or an existing home with a purchase price that does not exceed $619,381 ($757,021 in Target Areas).
MCCs can only be transferred in cases where the home is being sold to another eligible MCC applicant. In such a case, all MCC requirements must be met and the mortgage must be assumed for the transfer to occur.
For complete information, visit the web site here.