What are MCCs?
The Mortgage Credit Certificate (MCC) program gives homebuyers another savings option.
How does the MCC program work?
- May be paired with AHFA's Step Up program or any other 30-year, fixed-rate, amortizing mortgage offered by a participating lender
- Provides 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
What are the benefits?
- Qualified homebuyers pay lower federal income taxes
- Qualified homebuyers can see immediate savings by updating the withholdings on the W-4 form
The Mortgage Credit Rate is 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
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.