Mortgage Credit Certificate

The Mortgage Credit Certificate (MCC) program provides qualified homebuyers with an annual federal income tax credit equal to roughly 20% of the mortgage interest paid – every year for the life of the loan. For example, a loan amount of $345,000 with a 7.50% loan interest rate could produce tax savings the first year of $5,153*! If a homebuyer qualifies for the MCC, lenders can use the estimated tax savings as additional qualifying income to boost purchasing power and lower debt-to-income ratios! That means the estimated $5,153* first year savings equals $429 more per month of additional qualifying income – that’s a real inflation buster!

For qualified borrowers, the MCC can be added to the first mortgage loan – whether or not the Home At Last Down Payment Assistance program is being used. The MCC is for first-time homebuyers, which means not having owned a home in the past three years. Qualified veterans* are exempt from the first-time homebuyer requirement. Income and purchase price limits apply, and borrowers must meet all loan underwriting requirements for the mortgage being obtained to purchase a primary residence.

Use the MCC Calculator at the bottom of this page to estimate tax savings over the life of the loan. Divide the first year tax savings by 12 months to determine the additional qualifying income generated by the MCC. The 20% tax credit is not capped by the IRS – refer to the IRS website for full MCC tax credit details.