CALIFORNIA HOUSING FINANCE AGENCY CalHFA MCC TAX … · California Housing Finance Agency (CalHFA),...

CALIFORNIA HOUSING FINANCE AGENCY CalHFA MCC TAX CREDIT PROGRAM CLOSING PACKET CHECKLIST MCC RESERVATION NUMBER: LENDER LOAN NUMBER:

MORTGAGOR EMAIL: LENDER NAME:

MORTGAGOR NAME:

PLEASE SUBMIT ONLY COMPLETE FILES IN AN ACCO-BOUND FILE FOLDER IN THE EXACT ORDER SHOWN BELOW. INCOMPLETE AND NON ACCO-BOUND FILES WILL BE RETURNED AT LENDER EXPENSE. _____ This CHECKLIST CHECK ONE: _____ $350 for MCC’s combined with CalHFA First Mortgage loan programs CalHFA First Loan Number:__________ _____ $500 for MCC’s combined with Non-CalHFA First mortgage loan programs Corporate checks should be made payable to eHousingPlus. Note borrower(s) name and property address on the check. ***You MUST enter the Check # or the ACH Confirmation:______________________________________ SEND ONLY ITEMS LISTED BELOW (In Order)

If your loan has a MyHome or CalHFA First

1. Notice of Conditional Approval

OR No MyHome 1. CalHFA MCC Program Income Calculation Worksheet - - one for each

individual borrower. (Make sure to include the MOST current VOE and Paystubs for each borrower per directions on Worksheet)

2. CalHFA MCC Summary of All Attached Income Calculation Worksheets ORIGINAL OR CERTIFIED TRUE ONLY OF THE FOLLOWING: 3. _____ ORIGINAL CalHFA MCC Tax Credit Notice to Borrowers of Potential Recapture Tax 4. _____ ORIGINAL CalHFA MCC Tax Credit Borrower Affidavit COPIES OF THE FOLLOWING: 5. _____ CERTIFIED COPY of Fully Executed Real Estate Purchase Contract w/ addendums 6. _____ COPY of FINAL SIGNED 1003 Application for all borrowers 7. _____ COPY of FINAL SIGNED CLOSING DISCLOSURE (TRID form) 8. _____ COPY of SIGNED Income Tax Returns OR Transcripts OR any combo of returns/transcripts for the past 3 years (transcripts do NOT require a signature). Required for each applicant. ADDITIONAL DOCUMENTS, IF APPLICABLE. 9. _____ COPY of discharge papers (DD214) only if Veteran is qualifying under the Veterans Exception 10. _____ CalHFA MCC Tax Credit Certification of No Income (if applicable) 11. _____ CalHFA Tax Return Affidavit (if applicable) After compliance approval of all required items, the CalHFA MCC Tax Credit Certificate will be issued to the borrower via mail or secure email. THE COMPLETE ACCO-BOUND CLOSING PACKET FILE FOLDER AND FEE IS SUBMITTED TO: eHousingPlus 3050 Universal Blvd., Suite 190 Weston, FL 33331 The Compliance/Admin Fee is the fee charged by the Program Administrator/Compliance Agent to process the applicant/borrower from Origination to Compliance Approval, and to assess that the lenders originating such loans are following Program guidelines for the benefit of the eligible borrower(s). The Program Administrator/Compliance Agent tracks the loan via its web-based system, and assists the lender in processing the loan ensuring eligibility to the program available offerings, which can include various rate options, and down payment assistance. The Compliance/Admin fee includes the review of information and documents delivered in the form of a Compliance File by the originating lender, on behalf of the borrower. Additionally the Compliance review verifies that the lender has charged only the fees allowed by the Program. Contrary to this, approval may be denied and/or fees may have to be reimbursed to the borrower. The compliance file processing consists of required affidavits, application, closing documents, certain non-mortgage documents, tax returns where applicable and other pre-defined Program documents that are disclosed to the potential borrower(s). This is required to ultimately receive Compliance Approval. These documents can support both the first mortgage and any down payment assistance available, and are required to ensure eligibility to the Program, Federal, State and Local requirements, where applicable. The Compliance review verifies that the data and documents submitted meet all requirements, and may include those for first-time homebuyer, income limits, sales price limits, targeted areas, homebuyer education, rate, term, points, fee limits, LTV, FICO score, special state, city, county program requirements for qualified military, first responders, teachers, etc.). The Compliance/Admin Fee must be referred to as such in the Closing Disclosure and must be ONLY for amount stated in the program Administrator’s Guidelines. (Rev 03/09/16)

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CalHFA Notice to Borrowers Page 1 of 4 of Potential Recapture Tax 03/30/2012

California Housing Finance Agency (CalHFA), “Issuer”

Mortgage Credit Certificate Program

NOTICE TO BORROWERS OF POTENTIAL RECAPTURE TAX (To be completed by Lender and delivered to borrowers at the time of Closing of the Loan)

Because you have received Mortgage Credit Certificate (an “MCC”), pursuant to Section 143(m) of the Internal Revenue Code of 1986, you may, at the time you sell the residence for which you received an MCC, be subject to a special “recapture tax” for federal income tax purposes if you sell your house less than nine (9) years after its purchase and the issuance of the MCC. The following information is provided to assist you in determining whether you might owe a recapture tax on the sale of your home. However, you should consult your tax advisor at the time you sell the residence to determine the amount, if any, of such recapture tax you may owe. Name of Borrower(s): ________________________________________________________ ________________________________________________________ Principal Amount of Mortgage: $_____________________ Date of Closing: __________________ Property Address: ________________________________________________________ ________________________________________________________ A. INFORMATION YOU WILL NEED IN THE FUTURE

After you close your loan, you will receive a detailed letter from the Program Administrator or one that will be provided by your lender at closing. This letter should be kept with your other mortgage documents. It contains extremely important information that you will need to determine if you must pay recapture tax.

The letter contains information that you’ll need in order to complete Form 8828 such as 1. The loan amount (the highest principal amount of the loan); 2. Closing Date; 3. Name of the Issuer of the Bonds; 4. Name of the original lender that made the loan, and 5. Chart that details data necessary to complete Form 8828.

B. INTRODUCTION

1. General. When you sell your home, you may have to pay a recapture tax as calculated below. The recapture tax may also apply if you dispose your home in some other way. Any reference in this notice to the “sale” of your home also includes other ways of disposing of your home. For instance, you may owe the recapture tax if you give your home to a relative.

2. Exceptions. In the following situations no recapture tax is due, and you do not need to do the

calculations: a. You dispose of your home after nine (9) years after you close your mortgage loan; b. Your home is disposed as a result of your death; c. You transfer your home either to your spouse or to your former spouse incident to divorce

and you have no gain or loss included in your income under section 1041 of the Internal Revenue Code (in which case the spouse or former spouse is treated as if he or she had been the owner from the date of closing of the home mortgage);

d. You dispose of your home as a loss.

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Remember, to owe any recapture tax, you must sell your home within nine years, make a net profit on the sale of your home AND have a significant increase in income (usually that means more than 5% per year). All three criteria must be met in order for recapture tax to be due.

C. MAXIMUM RECAPTURE TAX The maximum recapture tax that you may be required to pay as an addition to your federal income tax is $________. [Insert the actual dollar amount resulting from the product of 6.25% multiplied by the highest principal amount of the mortgage loan] This amount is 6.25% of the highest principal amount of your mortgage loan and is your federally subsidized amount with respect to the loan.

D. ACTUAL RECAPTURE TAX The actual recapture tax, if any, can only be determined when you sell your home, and is the lesser of (1) 50% of your gain on the sale of your home, regardless of whether you have to include that gain in your income for federal income tax purposes, or (2) your recapture amount determined by multiplying the following three numbers:

1. The actual dollar amount resulting from the product of 6.25% multiplied by the highest principal amount of the mortgage loan (the maximum recapture tax as described in the paragraph C above): 6.25% x $______ = $____________

2. Holding period percentage, as listed in Column 1 in the table below: ____________% 3. The income percentage as described in Section D: ____________%

(1) x (2) x (3) = Actual Recapture Tax: $____________ Column 1 Column 2

Disposition Within # Years of Closing Holding Period Percentage Adjusted Qualifying Income

1 20% Determine the borrower’s household size at the time the home is sold or transferred. Then select the maximum income limit that would have applied to the household size at the time the home was purchased. This number, compounded by 5% per year from the date of purchase until the date the home is sold or transferred, is the Adjusted Qualifying Income

2 40% 3 60% 4 80% 5 100% 6 80% 7 60%

8 40%

9 20%

10 or More No Recapture Tax E. INCOME PERCENTAGE

You calculate the income percentage as follows:

1. Subtract the applicable adjusted qualifying income (Column 2 in table above) for the taxable year in which you sell your home, from your modified adjusted gross income in the taxable year in which you sell your home.

Your modified adjusted gross income means your adjusted gross income shown on your federal tax return for the taxable year in which you sell your home, with the following two adjustments: (a)

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your adjusted gross income must be increased by the amount of any interest that you receive or accrue in the taxable year from tax-exempt bonds that is excluded from your gross income (under Section 103 of the Internal Revenue Code); and (b) your adjusted gross income must be decreased by the amount of any gain included in your gross income by reason of sale of your home.

2. If the amount calculated in (1) above is zero (0) or less, you owe no recapture tax and do not need to make any more calculations. If it is $5,000 or more, your income percentage is 100%. If it is greater than zero (0) but less than $5,000, it must be divided by $5,000. This fraction, expressed as a percentage, represents your income percentage. For example, if the fraction is $1,000/$5,000, your income percentage is 20%.

F. REFINANCING YOUR HOME

If you refinance your home and stay in it for a full nine years, you won’t pay recapture tax. Recapture kicks in when the property ceases to be your principal residence before the full nine years, and then you may owe recapture tax. If you refinance in the first full four years and the property ceases to be your principal residence before the full nine years, there is a special calculation worksheet that must be used if you must pay recapture tax. See “For More Information” on the next page and instructions for Form 8828 for more detail.

G. “NET PROFIT” ON THE SALE OF YOUR HOME

Consult your tax advisor but generally you will be considering the amount you received for the sale of your home and deducting the expenses of selling your home (i.e. commission paid to a real estate agent, advertising, legal fees, etc.). This is the “Amount Realized” from the sale of the home. From the “Amount Realized” you will subtract your “Adjusted Basis” of your interest in the home. The “Adjusted Basis” will be increased by any sales commission you paid when you bought the home and decreased by depreciation. Your tax advisor will be helpful in determining the exact amount. If the total of the “Amount Realized” minus the “Adjusted Basis” is “0" or lower, you did not realize a gain (make a profit) when you sold the home and you DO NOT owe recapture tax. You will still need to complete a form 8828 and send it to the IRS with your federal income tax return in the year you sell or dispose of the home.

H. LIMITATIONS AND SPECIAL RULES ON RECAPTURE TAX

1. If you give away your home (other than to your spouse or former spouse incident to divorce), you must determine your actual recapture tax as if you had sold your home for its fair market value.

2. If your home is destroyed by fire, storm, flood, or other casualty, there generally is no recapture tax

if, within two years, you purchase additional property for use as your principal residence on the site of the home financed with your original subsidized mortgage loan.

3. In general, except as provided in future regulations, if two or more persons own a home and are

jointly liable for the subsidized mortgage loan, the actual recapture tax is determined separately for them based on their interests in the home.

4. If you repay your loan in full during the nine-year recapture period and you sell your home during

this period, your holding period percentage may be reduced under the special rule Section 143(m)(4)(C)(ii) of the Internal Revenue Code.

5. Other special rules may apply in particular circumstances. You may wish to consult with a tax

advisor or the local office of the Internal Revenue Service when you sell or otherwise dispose of your home to determine the amount, if any, of your actual recapture tax. See Section 143(m) of the Internal Revenue Code generally.

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I. DISCLOSURE OF APPLICANT INFORMATION

The borrower(s) hereby consent and agree that all information furnished by the borrower(s) to the lender, the administrator and the Issuer, including, but not limited to, non public personal and financial information (“the information”), in connection with the application for mortgage loan(s) requesting an MCC under this program, may be disclosed to any person or other third parties in connection with the processing of the borrow(s) loan application, verification of information concerning the loan or the borrower(s), and for any other purpose in furtherance of or connected with the Issuer’s program

The undersigned Borrower(s) has (have) received and read a duplicate copy of the foregoing Notice to Borrowers of Potential Recapture Tax: Date: ______________________________________ __________________________________________ __________________________________________ Borrower Signature Borrower Signature

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CalHFA MCC TAX CREDIT BORROWER AFFIDAVIT

CalHFA MCC Tax Credit Borrower Affidavit Page 1 of 6 04/20/2012

MCC Reservation #___________ I, _______________________________________and I, ___________________________________ “Applicant(s)”, have applied for a CalHFA MCC Tax Credit originated by ____________________________________________, do hereby represent and warrant as follows: 1. Location of Residence. I am a purchaser and mortgagor of the residence which is a [ ] new [ ] existing

residence and is located within the County of: ___________________________ at ________________________________________________________________

a. The residence [_____] is [_____] is not in a Targeted Area. 2. Tax Credit. I am aware that a mortgage credit certificate may entitle the recipient to an income tax credit. The

income tax credit can be claimed only against tax liability. If I do not have a tax liability, I may not be able to apply the income tax credit.

3. Veteran Status. The Applicant [_____] is [_____] is not a Qualified Veteran**

The Co-Applicant [_____] is [_____] is not a Qualified Veteran**

** “Qualified Veteran” means a person who is a “veteran” (as defined in 38 U.S.C. Section 101) who has not previously obtained a loan financed by single family mortgage revenue bonds or a loan which utilized a mortgage credit certificate program using the veteran’s exception to the 3-year requirement set forth in Section 143(d)(2)(D) of the Code. The Qualified Veteran must provide true and correct copies of their discharge or release papers, which demonstrate that such discharge or release was other than dishonorable.

4. Acquisition Cost. The Acquisition Cost* of the residence as shown in the purchase contract is $____________.

Neither (I/we) nor anyone on (my/our) behalf has made any payment other than such amount to the seller of the residence or to any other person on behalf of the seller, nor have (I/we) cancelled any debt of the seller or any related person of the seller.

(I/We) have not entered into any agreement with the seller of the home, the developer, the contractor, or any other person pursuant to which any portion of the residence has been left unfinished or any fixtures or other architectural appointments have been omitted or removed from the residence in order to reduce the Acquisition Cost, and the home as sold to (me/us) is substantially complete and contains all appropriate fixtures and other architectural appointments.

* The term “Acquisition Cost” means the cost of acquiring a residence from the seller as a completed unit. The term does not include usual and reasonable settlement or financing costs. It does include the amount of any lien or assessment to which the home is subject.

5. Sales Price Limit For An Existing House. (I/We) understand that if this transaction was for the purchase of a

new construction residence that the CalHFA approved sales price limits for existing home are in some counties of California, could be less than the CalHFA approved sales price limits for new construction. THIS COULD RESULT IN A LOWER SALES PRICE LIMIT UPON THE TRANSFER OF THE HOME MORTGAGE THAN WAS ORIGINALLY PAID FOR THE RESIDENCE. As of the date of this Affidavit, the CalHFA approved sales price limit for an EXISTING house in ______________________________________________ County is $______________________________.

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6. Principal Residence. (I/We) will occupy the residence as (my/our) principal place of residence within 60 days

of issuance of the MCC, and thereafter will maintain the property as (my/our) principal residence for the duration of the first mortgage. (I/We) do not intend to, and have not entered into any arrangement to rent, sell, assign or transfer the residence. (I/We) will promptly notify Issuer of the MCC and Lender if the residence ceases to be (my/our) principal residence.

a. (I/We) will not use more than 15% of the total area of the residence or otherwise use the residence

primarily in a trade or business which qualifies (me/us) to a deduction for expenses for business use of residence under Section 280A of the Internal Revenue Code, use the residence as investment property and will not receive any income from the residence or the land being purchased with the residence, or use the residence as a recreational residence. All of the land being purchased with the home is required to maintain the basic livability of the residence, and (I/we) have no intention of subdividing such land or otherwise selling it apart from the residence.

7. Prior Ownership of a Residence. (I/We) have not had a present ownership interest*** in a principal residence,

including factory made housing permanently fixed to real property, at any time during the three-year period immediately prior to the closing of the home mortgage, except that this paragraph does not apply if the home is located in a targeted area. (I/we) have attached copies of (my/our) signed federal income tax returns for such three-year period which were filed with the Internal Revenue Service. If (I/we) (was/were) not required to file such returns during one or more such preceding three years in accordance with Section 6012 of the Internal Revenue Code, (I/we) have executed the California Housing Finance Agency’s Tax Return Affidavit.

*** The term “present ownership interest” includes not only outright ownership but also any of the following interests if held either directly by you or in trust for you: a joint tenancy, a tenancy in common, a tenancy by the entirety, a community property interest, the interest of a tenant shareholder in cooperative, a life estate, or a contract pursuant to which you have possession and the benefits and burdens of ownership although legal title is not transferred until some later time and interest held in trust for you (whether or not created by you) that would be a present ownership interest if held by you.

8. New Mortgage. (I/We) will not use any part of the loan proceeds to acquire or replace an existing mortgage or

loan which (I/we) have on the residence. 9. Prohibited Mortgages. (I/We) understand that no portion of the financing for acquisition of the residence is

provided by a qualified mortgage or veteran’s bond. 10. Income. (I/We) understand that income means the current annualized family income at the time of closing, as

determined in accordance with the IRS Code. Income means the gross monthly income of all mortgagors living in the property and liable on the deed of trust/mortgage, multiplied by twelve.

Gross monthly income includes the sum of current monthly gross pay and any additional income from investments, pensions, VA compensation, part-time employment, bonuses, dividends, interest, current overtime pay, net rental income, royalties, etc. Other income must also be included such as alimony and child support, public assistance, sick pay, social security benefits, unemployment compensation, income received from trusts, business activities or investments. In determining gross monthly income, the income of all mortgagors living on the property and liable on the deed of trust/mortgage must be taken into account.

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Under no circumstances will the income used for MCC Tax Act compliance be less than that used by the lender when qualifying applicants for repayment of their mortgage loan (i.e., income used to calculate qualifying ratios).

The information contained in the following table is true and correct, and accurately sets forth all information relevant to make a determination of my family’s income as of the date hereof and the continuation of which is probable based on foreseeable economic circumstances, and to the best of my knowledge and belief:

COMPUTATION OF TOTAL ANNUAL INCOME

Type of Income Applicant Co-Applicant or Spouse

Other Co-Applicants

* Total of 3 columns to left

Total Annual Income (must include any & all types of Income earned as stated above)

$__________________

$__________________

$__________________

$ _________________

*This total cannot exceed the maximum income limits established by the CalHFA MCC Tax Credit program.

11. Family Size. (I/We) certify that the total number of members of (my/our) family, including (me/us), who will

reside permanently in the residence is ______, and that the applicant(s), and only the applicant(s), (is/are) acquiring a present ownership interest in the residence.

12. Initial Notice to Mortgagor of Potential Recapture Tax - Notice is hereby given that you may be subject to a

special "Recapture Tax" for federal income tax purposes, which would be imposed at the time you sell the residence for which you obtained an MCC, if you sell the residence within the first nine years. This potential tax, which is not imposed unless and until you sell your home, is based on the concept that through the MCC, the federal government has enabled you to take a tax credit of the interest you pay on your home mortgage. The amount of the potential tax increases for the first five years that you own the home and thereafter declines. No tax is imposed if you hold (do not sell) your home for a total of nine or more years. In the event you sell your home within the first nine years, a number of factors determine the amount of tax, if any, imposed at the time of the sale of the home. These include: (1) the original principal amount of the home mortgage, (2) the number of complete years that pass before you sell the home, (3) the median family income for your area at the time you bought the home, and (4) your modified, or adjusted, gross annual income at the time you sell the home. If you sell the residence more than nine years after the close of escrow, no recapture liability arises. Also, if you sell the residence during the first nine years after closing, but your income does not increase more than 5% per year during that period, you will likely not incur recapture liability. In addition, if there is no net gain on the sale of the home, no recapture liability arises. Finally, in no case will the recapture liability exceed 50% of your gain from the sale of the residence. When preparing your post-sale tax return, you should consult a tax professional regarding your calculation. After your loan closes, you will be given a second notice by the Program Administrator with a more detailed explanation of the recapture tax and certain additional information that will be needed to calculate the amount, if any, of Recapture Tax liability you may have.

13. No Other Certificate. (I/We) have not previously been the applicant(s) on a CalHFA MCC Tax Credit

application rejected by another lender. 14. Lender. (I/We) have not been required to seek financing of the residence through any particular lender in order

to qualify for the MCC Tax Credit Program. Further, no person related to (me/us) has, and does not expect to have, an interest as a creditor in the mortgage loan financing.

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15. Transfer or Assumption. (I/We) will immediately notify Issuer of MCC and lender in the event of sale or

transfer of the residence. (I/We) further understand in the event that I sell the residence at any time and desire to have my MCC transferred pursuant to the transfer provisions of the program that the person assuming my first mortgage loan must demonstrate that he or she has assumed the liability for the remaining balance of the loan, and must qualify as a new CalHFA MCC applicant.

16. Citizenship. (I/We) certify that (I/we) are citizens or other nationals of the United States or a qualified alien as

defined in the Citizenship and Lien Verification regulations of the California Housing Finance Agency set forth in Title 25 of the California Code of Regulations, Division Z, Chapter 3 (Sections 12001, et. seq.) which implement federal legislations know as Title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (Pub. L No. 104-193, 8 U.S.C. Sections 1601, et. seq.).

17. Program Information. (I/We) have been furnished a copy of the MCC Information Guide and (am/are) familiar

with and understand the provisions of the Program. 18. Social Security Numbers. (I/We) certify that (my/our) Social Security Numbers are:

Social Security Numbers must be hand written by borrower or lender _____________________________________ Social Security Number___________________ Name of Applicant #1 _____________________________________ Social Security Number___________________ Name of Applicant #2 _____________________________________ Social Security Number___________________ Name of Applicant #3 _____________________________________ Social Security Number___________________ Name of Applicant #4

19. Purpose. The above information is being submitted for the purposes of establishing eligibility for the California Housing Finance Agency’s MCC Tax Credit program. Because the lender has explained the Program to me, I am familiar with and understand the provisions of the Program. (I/We) agree to submit such other evidence of income as may be reasonably required by the lender including, but not limited to, pay stubs and copies of federal income tax returns.

20. Ethnicity/Race The following information is requested by the Federal Government for certain types of transactions related to a dwelling in order to monitor the Agency’s compliance with fair housing laws. You are not required to furnish this information, but are encouraged to do so. The law provides that an Agency may neither discriminate on the basis of this information, nor on whether you choose to furnish it. However, if you choose not to furnish it, the Agency will note race and sex on the basis of visual observation or surname. If you do not wish to furnish this information, please check the box below.

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Primary Applicant I do not wish to furnish this information

Gender

Male Female Ethnicity

Not Hispanic or Latino Hispanic or Latino

Race or National Origin

American Indian or Alaskan Native

Asian (specify) Asian Indian Bangladeshi Cambodian Chinese Filipino Hmong Indonesian Japanese Korean Laotian Malaysian Pakistani Taiwanese Thai

Black or African American Native Hawaiian and Pacific

Islander Fijian Guamanian Hawaiian Samoan Tongan

White

Other _____________________

Co-Applicant I do not wish to furnish this information

Gender

Male Female Ethnicity

Not Hispanic or Latino Hispanic or Latino

Race or National Origin

American Indian or Alaskan Native

Asian (specify) Asian Indian Bangladeshi Cambodian Chinese Filipino Hmong Indonesian Japanese Korean Laotian Malaysian Pakistani Taiwanese Thai

Black or African American Native Hawaiian and Pacific

Islander Fijian Guamanian Hawaiian Samoan Tongan

White

Other _____________________

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(I/We) understand that if (I/we) have made any material misstatements in the forgoing representations or omitted any of the information requested, the office of the district attorney will be contacted for investigation regarding misrepresentation and fraud. Date: ______________________________________ ___________________________________________ Printed Name of Applicant ___________________________________________ Signature of Applicant ___________________________________________ Printed Name of Co-Applicant ___________________________________________ Signature of Co-Applicant CERTIFICATION OF THE LENDER Based upon reasonable investigation, the Lender has no reason to believe that either the applicant or the seller of the residence has made any negligent or fraudulent material statements in connection with the applicant’s application for an MCC, and submits the completed information above as accurate and true to the best of the lender’s knowledge. I certify that I have reviewed the CalHFA MCC Tax Credit Application and Borrower Affidavit for accuracy and completeness. I also certify that the financing attached to this MCC does not use any of the prohibited financing such as mortgages funded with a qualified mortgage bond or a qualified veteran's mortgage bond. Date: _________________________________________ _____________________________________________ Company Name _____________________________________________ Signature of Lender Representative ______________________________________________ Title of Lender Representative

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CalHFA Summary of All Attached Income Calculation Worksheets

MCC Number _______________ Primary Borrower Name ____________________________________________________________ Property Address ___________________________________________________ City ________________________________ County ______________________ ZIP Code + 4 ______________ List information from individual Income Calculation Worksheet (1 per Borrower). Borrower(s) must sign at closing. Income Recipient Name Total Annual Income of each BORROWER

* must match Income Calculation Worksheet(s) Primary Borrower

Additional Borrower

Additional Borrower

Total Annual Income

Household Income Closing Affidavit As of closing on____________________(date), information is correct as above or changes are: Borrower ____________________________________________________________ Borrower_____________________________________________________________ Borrower ____________________________________________________________

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Please make sure you attach the Income Calculation Worksheet per Borrower along with the required VOE, Paystubs, etc.

CalHFA MCC Program Income Calculation Worksheet

Please complete separate worksheet for each person not using CHDAP who will be liable on the mortgage, be vested on title and live in the residence being financed

Name of person for whom income is calculated______________________________________ If not primary borrower, name of primary borrower ________________________________ Date income calculated _________________________ Income Type Monthly Amount Gross Pay Base monthly income as per current VOE (no more than 60 days old at time of submission and attached) and most current paystub(s) covering a 30 day period (no more than 60 days old at time of submission and attached) Lender Notes:

$ $

Other monthly income that may include, but is not limited to 1. Overtime and inconsistent income; bonus and commission income, part-time

employment; Year to date total income less base as per current VOE (attached) and most current paystub (within 30 days) (attached) -

2. Income from dividends, interest, Annuities: Use current earnings statements (attached)

3. Pension and social security benefits; unemployment compensation; disability, worker’s compensation, Veteran’s Administration (VA compensation); Use the benefits statement

4. Spousal support and child support; Use the monthly amount appearing in the divorce decree, separation agreement or other support document.

5. Human Assistance/Service, Welfare payments (Attach documentation) 6. Gross rental income (Attach documentation) 7. Deferred income (Attach documentation) 8. Attach documentation for all Business and investment income from all non-

taxable and taxable sources 9. Active Duty Military Housing Allowance (Attach documentation) 10. All other regularly occurring additional income including but not limited to

earnings (Attach documentation) Lender Notes:

1. $ 2. $ 3. $ 4. $ 5. $ 6. $ 7. $ 8. $ 9. $ 10.$

Note: 2106 business expenses cannot be deducted from gross wages for tax compliance purposes For additional assistance, please direct Income questions to Compliance office. Transfer Information to the Worksheet Summary. Have borrower(s) sign Summary Sheet at closing. This serves as borrowers acknowledgment that the income shown has not changed since submitted.

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TOTAL MONTHLY INCOME (Sum of all of the above)

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TOTAL ANNUAL INCOME FOR BORROWER (need form for each borrower)

CalHFA MCC Tax Credit Tax Return Affidavit 04.18.12

CalHFA MCC Tax Credit

TAX RETURN AFFIDAVIT I, , and I, , as applicants for a home mortgage loan originated by: , pursuant to the Mortgage Credit Certificate (MCC) Program of the California Housing Finance Agency, do hereby represent and warrant that (I/we) were not required to file a federal income tax return for the calendar year(s) ____________________________ in accordance with section 6012 of the Internal Revenue Code. In lieu of tax returns, the lender must provide a verification of rents for the calendar year(s) referenced above (I/We) declare under penalty of perjury that the foregoing is true and correct. Executed on the date or dates shown below.

Date

Signature of Borrower

Date

Signature of Borrower

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CALIFORNIA HOUSING FINANCE AGENCY CalHFA MCC TAX … · California Housing Finance Agency (CalHFA),...

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