The Mortgage Credit Certificate (MCC) program gives Alabama’s low- to moderate income families another homeownership option. Combining AHFA’s Step Up program with the Mortgage Credit Certificate’s tax credit makes homeownership even more affordable. Through the reduction of the amount of federal income tax that qualified homebuyers pay, MCC’s gives potential home buyers available income to qualify for a mortgage loan.
MCCs provide a direct dollar-for-dollar reduction in federal taxes worth 20 percent of the mortgage interest paid each year. The remaining 80 percent of the interest still can be claimed as a tax deduction.
Participants must meet federally established income and sales price limits.