Rhode Island Code of Regulations › Title 825 - Housing and Mortgage Finance Corporation › Chapter 20 - Rules Relative to Single-Family Loan Programs › Subchapter 00 - N/A › Part 2 - Mortgage Credit Certificate Program (825-RICR-20-00-2) › Section 825-RICR-20-00-2.4 - ELIGIBILITY CRITERIA

Current through June 14, 2024
A. Tax Act and Program Requirements. The Property securing a Mortgage Loan shall be the Borrower's principal residence, and occupied by the Borrower within a reasonable time (e.g., sixty (60) days) after the Closing or completion of rehabilitation or improvements, as required by the Tax Act.
B. Income Limits. The Aggregate Family Income of Borrowers shall be established by the Corporation and made available by Program Bulletin from time to time, but shall not in any event exceed the Aggregate Family Income limits established pursuant to the Tax Act.
C. Limitation on Prior Homeownership. Except for Borrowers acquiring properties in Targeted Areas as defined in §
										2.5     of this Part who are not subject to limitations on prior homeownership under the Tax Act, no Borrower shall be eligible for Credits if he or she has owned a principal residence within the three (3) year period prior to the Closing of the Mortgage Loan.
D. Qualified Properties. To be eligible under the MCC Program, a Borrower must be acquiring an existing or new single family residential dwelling and the property must be located in the State. A single family residential dwelling shall include a condominium unit and, if approved by the Corporation, a share in a qualified cooperative housing corporation or any other similar housing corporation. Two, three and four family residences that have been occupied as such for not less than five (5) years prior to Closing and are located in the State also shall constitute qualified properties.
E. Acquisition Cost Limits. The acquisition cost of qualified properties shall be established by the Corporation and made available by Program Bulletin from time to time, but shall not in any event exceed the acquisition cost limits established under the Tax Act.
F. Amount of Credit. Under the Tax Act, qualified Borrowers are entitled to a Credit, as established by the Corporation, in the amount of between ten (10%) percent and fifty percent (50%) of the interest paid on the Mortgage Loan each year during the loan term. Until revised by Program Bulletin, the amount of the Credit is hereby established at twenty percent (20%).
G. Non-Qualifying Loans. An MCC shall not be issued in connection with any loan made or acquired under any program established pursuant to the Rules and Regulations of the Corporation Applicable to the Mortgage Finance Programs as the same may be amended from time to time (the "Single Family Program Regulations') or, the refinancing of an existing mortgage loan, except as may be permitted by the Tax Act.
H. Documentation. Borrowers shall execute an affidavit or affidavits, in form satisfactory to the Corporation, evidencing an intent to occupy the residence within a reasonable time after the Closing as required by the Tax Act and, evidencing an intent to use and occupy the property as the Borrower's principal residence for the term of the Mortgage Loan. Borrowers and Mortgage Lenders shall also execute such other affidavits, documents, Treasury and other forms and certifications as may be required by the Corporation to evidence compliance with the Tax Act and the requirements of the MCC Program.