Mortgage Credit Certificates refer to government mortgage payment subsidies other than Section 8 Homeownership Vouchers. The Mortgagee must verify and document the amount of the tax rebate.
Mortgage Credit Certificate income that is not used to directly offset the Mortgage Payment before calculating the qualifying ratios may be included as Effective Income. The Mortgagee must use the current subsidy rate to calculate the Effective Income.
For additional information, see Handbook 4000.1 II.A.4.c.xii(D) or II.A.5.b.xii(D) and II.A.5.d.vii(B) available at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh