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City of Chicago Mortgage Credit Certificate (MCC) Program Application Process.

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Presentation on theme: "City of Chicago Mortgage Credit Certificate (MCC) Program Application Process."— Presentation transcript:

1 City of Chicago Mortgage Credit Certificate (MCC) Program Application Process

2 TaxSmart MCC Program Application Process The Participating Lender is required to complete the TaxSmart MCC Application and assist the homebuyer with the completion of the Borrower Application Documents. The official TaxSmart MCC Program Application and Borrower Application Documents are available to the Lender on the City’s web-site at cityofchicago.org/dcd. Submit the completed TaxSmart MCC Program Application to: Alberta Daniels City of Chicago TaxSmart MCC Program City Hall, Room North LaSalle Street Chicago, Illinois

3 TaxSmart MCC Program Application Process TaxSmart applications are processed in the order in which they are received. TaxSmart applications must be submitted at least two (2) weeks before loan closing to allow for DCD processing. It is essential to have completed applications and required documentation to ensure a Conditional Approval Letter is issued before loan closing. Loans closed before the receipt of a Conditional Approval Letter do not qualify to receive the TaxSmart benefit. The Borrower Application Documents must be submitted as original documents with original signatures and notary. Please do not submit the documents by scanned or fax. The mortgage application (1003), sales contract, and income tax returns may be submitted as copies. The Borrower Application Funds Reservation Form (official borrower application) is an interactive PDF that can be ed to the City to begin the approval process.

4 TaxSmart MCC Program Application Process Upon receipt of a complete application, information is entered into the Mitas Loan Reservation System. The eligibility review is performed. If the homebuyer is qualified to participate in the program, the Lender will receive:  TaxSmart Reservation Confirmation (summary of the borrower application that includes a funds reservation number by which the applicant is identified). The funds reservation number must be included on the borrower application document where applicable.  City Disclaimer disclosing program provisions associated with the registration confirmation.  Borrower Application Checklist (list of borrower application documents required in order for the City to issue a Conditional Approval Letter.)

5 TaxSmart MCC Program Application Process Upon receipt of the borrower application documents requested in the Checklist, DCD will issue a TaxSmart MCC Conditional Approval Letter. The Conditional Approval Letter is utilized at the loan closing and serves as evidence of the TaxSmart benefit to the homebuyer. The City’s commitment is limited to the expiration date provided in the Conditional Approval Letter. Loans not closed by the expiration date will be cancelled unless an extension has been granted. Generally, the Conditional Approval will expire two months from the date of the commitment from the City. Within 14 days after the loan closes, the Lender submits the TaxSmart Closing Package. The Closing Package includes:  Lender’s Closing Affidavit  Borrower’s Closing Affidavit  Seller’s Closing Affidavit  TaxSmart MCC Program Fee of $ Please make this check payable to the City of Chicago. Personal checks are not accepted. Checks drawn on the participating lender, title company, cashier’s checks, and money orders are all acceptable forms of payment.

6 TaxSmart MCC Program Application Process Closing packages received after the 14 day period allotted to submit the closing package may be subject to the Internal Revenue Service (IRS) Late filing fee of $ The City reserves the right to cancel any TaxSmart Reservation when the loan closing package has not been received at least 28 days after the loan closing. The actual Mortgage Credit Certificate and Refinancing Documents are mailed to the Lender. The Lender provides the homebuyer with the original certificate.


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