new 1st time homebuyer tax credit works in addition to the Federal $8,000 stimulus and can add up to $35,000 over the life of your loan

1. The Arlington BankThe Arlington Bank
2009 Mortgage Credit2009 Mortgage Credit
Certificate (MCC)Certificate (MCC)
ProgramProgram
Contact Brent at The Arlington Bank for moreContact Brent at The Arlington Bank for more
informationinformation

2. History of Federal MCCHistory of Federal MCC
ProgramProgram
• Federal Government programFederal Government program
established in 1984established in 1984
• MCC Program currently available OhioMCC Program currently available Ohio
• 12.5 million in credits available12.5 million in credits available
• The Arlington Bank is currently 1 of onlyThe Arlington Bank is currently 1 of only
16 approved lenders in Ohio16 approved lenders in Ohio
Contact Brent at The Arlington Bank for more informationContact Brent at The Arlington Bank for more information

3. What’s New with MCCs?What’s New with MCCs?
 Mortgage interest creditMortgage interest credit
 Annual tax credit rates:Annual tax credit rates:
– (20%) Credit for non-target areas(20%) Credit for non-target areas
– (25%) Credit for target areas(25%) Credit for target areas
– (30%) Real estate owned (REO)(30%) Real estate owned (REO)
purchasespurchases
 Contact Brent at The Arlington Bank for more informationContact Brent at The Arlington Bank for more information

4. What’s New with MCCs?What’s New with MCCs?
What is a Real Estate Owned (REO)What is a Real Estate Owned (REO)
Property?Property?
An REO property is a single family propertyAn REO property is a single family property
purchased from HUD, Fannie Mae,purchased from HUD, Fannie Mae,
Freddie Mac, VA or USDA -RD, or from aFreddie Mac, VA or USDA -RD, or from a
financial institution that acquired thefinancial institution that acquired the
property through foreclosure.property through foreclosure.
 Contact Brent at The Arlington Bank for more informationContact Brent at The Arlington Bank for more information

5. Current GuidelinesCurrent Guidelines
Applicants Must:Applicants Must:
Use The Arlington BankUse The Arlington Bank
Qualify under the current First-Qualify under the current First-
Time Homebuyer ProgramTime Homebuyer Program
guidelinesguidelines
Contact Brent at The Arlington Bank for more informationContact Brent at The Arlington Bank for more information

6. Current GuidelinesCurrent Guidelines
4 categories for Ownership status:4 categories for Ownership status:
1.1. Actual First time home buyersActual First time home buyers
2.2. No ownership in a principalNo ownership in a principal
residence in past three yearsresidence in past three years
3.3. Buying in a Target areaBuying in a Target area
4.4. VeteransVeterans

7. Current GuidelinesCurrent Guidelines
 Sale price of homeSale price of home
 See County income limits hereSee County income limits here
 Household IncomeHousehold Income
– Both are higher in target areasBoth are higher in target areas
– Limits vary by countyLimits vary by county

8. Current GuidelinesCurrent Guidelines
 Acreage requirements:Acreage requirements:
Acreage limits have changed and nowAcreage limits have changed and now
follow the following guidelines:follow the following guidelines:
• 2 acre limit within a municipal2 acre limit within a municipal
corporationcorporation
• 5 acre limit outside a municipal5 acre limit outside a municipal
corporationcorporation

9. Current GuidelinesCurrent Guidelines
What is a Target Area?What is a Target Area?
AndAnd
Where are they?Where are they?

10. Target AreaTarget Area
• An economically distressed area asAn economically distressed area as
designated by HUDdesignated by HUD
• Income and sales price limits are higher inIncome and sales price limits are higher in
target areastarget areas
• Most counties contain both target and non-Most counties contain both target and non-
target areastarget areas
• Do not have to be a first-time homebuyerDo not have to be a first-time homebuyer

11. Interactive map of Target areasInteractive map of Target areas
• The Arlington Bank can assist you byThe Arlington Bank can assist you by
clicking hereclicking here

12. Current GuidelinesCurrent Guidelines
• Must use a fixed rate loan productMust use a fixed rate loan product
• Must pay a $300 fee at loan closingMust pay a $300 fee at loan closing
• Homebuyer education is required and can beHomebuyer education is required and can be
completed online and over the phonecompleted online and over the phone
• Homebuyer can adjust their W4 for andHomebuyer can adjust their W4 for and
receive more money in their paycheck everyreceive more money in their paycheck every
week!week!

13. MCC ExerciseMCC Exercise
 If a borrower has a loan for a REOIf a borrower has a loan for a REO
property for $100,000 at 6.5% with aproperty for $100,000 at 6.5% with a
mortgage payment of $632.07 on 360mortgage payment of $632.07 on 360
month amortization, the first year interestmonth amortization, the first year interest
would be $6,467.09. How much creditwould be $6,467.09. How much credit
would the borrower be able to claim?would the borrower be able to claim?

14. AnswerAnswer
 The borrower would receive a credit ofThe borrower would receive a credit of
$1940.12 for the tax return filed for that$1940.12 for the tax return filed for that
yearyear