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.

Success Stories: Gidget Maxwell, New Market

10/19/2015

Gidget Maxwell used the Mortgage Credit Certificate to help her afford a home that met all of her needs.