Mortgage Credit Certificate Program

The Mortgage Credit Certificate (MCC) Program is a $5 million statewide program available to first-time homebuyers, veterans and buyers purchasing a home in designated areas who are low- to moderate-income. Homebuyers who use the MCC program can take a federal tax credit up to 40% of their annual mortgage interest payments for the life of their loan up to $2,000 per year.

Program Details

  • Program is available for low and moderate income first-time homebuyers
  • Household income limits depends on the number of people in the household and the location of the property. Refer to Exhibit T for purchase price limits and Exhibit U for income limits).
  • Homebuyers can take up to 40% of their annual mortgage interest payments (maximum of $2,000 a year) as a tax credit on their federal income tax return.
  • Homebuyers can continue to receive the federal tax credit as long as they occupy the property as their primary residence.
  • Homeowners who use the MCC program must file IRS Form 8396 with their federal tax returns.

Program Benefits

  • Program can be used in conjunction with the LHC's down payment assistance programs.
  • Increases applicant's disposable income, thereby increasing borrower's eligible lown amount.
  • Mortgage Credit Certificates can be layered with any first-time homebuyer loan product except mortgage revenue bonds.
  • Master Servicer approval is not required.
  • Available statewide