Micronesia Community Development Co.
Exploring the challenges for gap families and
FINDING A SOLUTION
We refer to moderate income families as Gap families because it is so difficult for them to participate in homeownership in Guam. There are two principal challenges that affect these families.
- First, they make too much money to quality for low income, subsidized programs but they do not make enough money to qualify for high cost market housing.
- Secondly, the economics of home ownership in Guam work against these families. Residential real estate in Guam sells for a premium as a result of a tight labor market in the construction trades and the cost of raw materials, many of which must be imported from abroad.
The United States Department of Agriculture (USDA) which finances real estate development in rural economies such as Guam defines Moderate Income Families as families whose incomes that do not exceed the USDA’s published rate of 115% of the agency’s published income table for the Western Pacific.
AM I ELIGIBLE?
- You must meet income guidelines.
- Have a stable job history
- You must have an acceptable credit history (Credit Analysis Available)
- Homeowners must be willing to work the required number of hours per week during the construction period. Disabled people may have others work for them.
Why is Mortgage Credit Certificate (MCC) important?
An MCC is a certificate issued by a local government, in this case the government of Guam that allows a taxpayer to claim a tax credit for some portion of the mortgage interest paid during a given tax year. The tax credit, up to $2,000, is a dollar for dollar tax credit which enables the homeowner to reduce his income tax liability and therefore increase his net earnings this providing the buyer will more income with which to quality for the home loan.