Mortgage Credit Certificate Program

MCC Program Description

A MCC Provides the income eligible First-Time homebuyer with an opportunity to reduce the amount of Federal Income tax otherwise due by an amount equal to 20% of the mortgage interest payments as a dollar for dollar credit on their annual taxes. The remaining 80% can be taken as the usual allowable deduction of the itemized return. The result increases the household's overall income and ability to qualify for a mortgage loan.

The Mortgage Credit Certificate "MCC" Program, provides assistance to first-time homebuyers for the purchase of owner-occupied single family homes, townhomes, and condominiums by reducing the amount of federal income taxes otherwise due (but not to exceed the amount of federal taxes owed for the year after other credits and deductions have been taken). However, the unused tax credits can be carried forward three years, until used.

The federal income tax advantage provided by the MCC allows the income qualified first-time homebuyer to obtain a higher 1st mortgage. There are specific eligibility requirements to qualify for a MCC Certificate.

To see if you are eligible for a MCC, you must contact an eligible Participating Lender.

How an MCC benefits the home buyer