This may prove to be more beneficial to Portland real estate than the recently expired federal tax credit, so why have most buyer's never heard of this program? Mostly because most lenders have not become approved lenders for the MCC. The MCC is a federal program managed by the state that allows a homebuyer within the city limits of Portland to receive a yearly tax credit for 20% of the interest owed on the loan- as long as they own the home. Lenders in this program may use the 20% credit to allow the buyers to qualify for a larger loan by taking the 20% credit into consideration for the buyer's income. The buyers may still claim the remaining 80% of the interest for tax purposes.
There are income restrictions and a price limit, but this is a fabulous bonus for 1-2 persons earning up to $71,200. I was made aware of the MCC by Bertha Ferran, our Windermere in house lender, who was instrumental in opening up this program for Portland real estate purchases. Details.