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.
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.