Mortgage Credit Certificate
A Mortgage Credit Certificate (MCC) allows the homebuyer to claim a tax credit for some portion of the mortgage interest paid per year for the life of the loan. It is a dollar for dollar reduction against your federal tax liability.
Note: The Mortgage Interest Credit (MCC) is a non-refundable tax credit, therefore, the Home buyer MUST have tax liability in order to take advantage of the tax credit.
For example:
$100,000 loan @ w/6% interest rate
Pays: $6,000 interest on their mortgage the 1st year
Receives: MCC providing a 30% tax credit
Equals: $1,800 tax credit ($6,000 x .30)
The program is open to those individuals and families who:
- Meet income and home purchase requirements
- Have not owned a home as primary residence in the most recent years
- Meet the qualifying requirements of the mortgage loan
- Will use the home as their principal/primary residence
