What is an MCC?
An MCC is a federal income tax credit designed to assist persons better afford individual
ownership of housing. With an MCC, the qualified homebuyer is eligible to write off a portion of
the annual interest paid on the mortgage as a special tax credit, not to exceed $2,000, during
each year that they occupy the home as their Principal Residence. The portion or amount of the
tax credit is equal to the mortgage credit rate on the MCC (for example 35%) multiplied by the
annual interest paid. This credit reduces the federal income taxes of the buyer, resulting in an
increase in the buyer’s net earnings. Increased buyer income results in increased buyer capacity
to qualify for the mortgage loan. The MCC has the potential of saving the MCC holder thousands
of dollars over the life of the loan. Please see the applicable Fact Sheet for the Mortgage Credit
Certificate Rate.

Show All Answers

1. What is an MCC?
2. What is the difference between a “tax credit” and a “tax deduction”?
3. How does the Homebuyer realize the increase in “home-buying power”?
4. What happens if a qualified Homebuyer cannot use the entire amount of the MCC credit?
5. Will a Homebuyer qualify if they are not a First-Time Homebuyer?
6. Can a Homebuyer apply for a MCC after they have closed on their mortgage?
7. What loans types can be used with the MCC?
8. Does the Mortgage Credit work like the Earned Income Credit?
9. Does a Homebuyer lose their credit if they refinance their mortgage?
10. How does the Mortgage Credit Certificate work?
11. How do you figure the tax credit the Homebuyer can receive?
12. Where does a Homebuyer obtain an MCC?
13. How long does the credit certificate last?
14. What are the MCC requirements?
15. What are income and purchase price limits?
16. What kinds of properties are eligible?
17. How does a homebuyer apply for an MCC?