What is Mortgage Credit Certificate (MCC)?

MCC is designed for qualified homebuyers to claim a tax credit for a portion of the mortgage interest paid annually.

  • Income and purchase price limits apply - call today for details!
  • Must be used in conjunction with a FHA, VA, USDA, or Conventional program
  • The portion of the amount of the tax credit is equal to the mortgage credit certificate rate on the MCC multiplied by the annual interest paid, i.e., a 20% MCC provides a 20% tax credit
  • Available for first-time homebuyers only
  • “Tax Credit” vs. “Tax Deduction”
    • Tax credit entitles a tax payer to subtract the amount of credit from their total federal taxes whereas a tax deduction is subtracted from adjusted gross income before federal income taxes are computed
  • MCC is in effect for the life of the loan as long as the home remains in the borrower’s primary residence