fha underwriting policy for borrowers using an mcc to qualify As a reminder, pursuant to the FHA Single Family Policy Handbook (HUD Handbook 4000.1), FHA does not permit a Mortgage Credit Certificate (MCC) to be used as an offset to a borrower’s total monthly mortgage payment (PITI) for underwriting purposes. Consistent with this policy, and in accordance with guidance received from FHA, CHFA only permits an MCC to be utilized as additional income for loan qualifying purposes.
Effective immediately, loans under any CHFA program submitted to CHFA for program compliance review where an MCC has been used to offset PITI
will be suspended and the loan must be re-underwritten using the MCC as income. CHFA recommends that lenders review all loans which they have underwritten using an MCC to ensure they comply with FHA policy.