Definitions

For purposes of this Article, the following words and phrases are defined to mean:

(a)Eligibility means those persons meeting the following requirements:

(1)the buyer’s household income must fall within a specified limit set aside by the Internal Revenue Service;

(2)the mortgage loan must be a new loan, not a refinancing; and

(3)the home must become the buyer’s principal residence within sixty

(60)days of closing.

(b)First time homebuyer means any individual or family who has not had any ownership interest in a residential dwelling within the five

(5)years preceding the date of application. A family or individual who has had an ownership interest in residential real property within the five

(5)year period preceding the date of application, but such interest was terminated by a decree of divorce or operation of law, does qualify as a first-time homeowner. COL9/7/2021 CH. 4 GUAM HOUSING CORPORATION

(c)Mortgage credit certificate means the method of providing housing assistance to eligible homebuyers authorized by Congress in the 1984 Tax Reform Act.

(d)Recapture or recapture tax means a supplemental Federal income tax to which mortgage credit certificate recipients may be subject if they sell the house they purchased with mortgage credit certificate assistance within nine

(9)years of the date of purchase.

(e)Tax credit means an entitlement authorizing the taxpayer to subtract the amount of credit from his Federal income tax.

(f)Tax deduction means that amount subtracted from the adjusted gross income tax before calculating the Federal income tax.