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Homebuyers

What are MCCs?

The Mortgage Credit Certificate (MCC) program gives homebuyers another savings option. 

MCCs are available with conventional fixed-rate, FHA, VA, Rural Development and privately insured mortgages. Applications are accepted on a first-come, first-served basis by a statewide network of participating lenders. 

Participants must meet federally established income and sales price limits. 

How does the MCC program work?   

MCCs provide a tax credit to reduce the amount of federal taxes owed by a percentage of the annual mortgage interest paid each year. The remaining annual interest may be claimed as a mortgage interest deduction on the homebuyer's federal tax return.

Qualified homebuyers pay lower federal income taxes or benefit from immediate savings by updating the withholdings on their W-4 form. MCCs may be paired with AHFA's Step Up program or any other 30-year, fixed-rate, amortizing mortgage offered by a participating lender.  

Mortgage credit rates are based on the loan amount: 

  • 20% MCC for loans of $150,001 or greater: no cap
  • 30% MCC for loans of $100,001 to 150,000: $2,000/year cap
  • 50% MCC for loans of $100,000 or less: $2,000/year cap