What kinds of properties are eligible?
An MCC can be used for either new or existing single-family homes, detached or attached
structures, consisting of not more than four connected dwelling units intended for residential
housing, each for one family, or a single unit in a condominium, or townhouse. A single unit in a
duplex, triplex, or fourplex, or an entire duplex, triplex, or fourplex can be financed, provided that
one of the units will be occupied by the Applicant and the Residence was first occupied for
residential purposes at least five years prior to origination of the mortgage loan. However, this five year
requirement does not apply to a single unit in a duplex.
If the subject property has two, three or four units and is in a Non-Targeted Area census tract, the
Lender must submit documentation verifying that the structure was first occupied at least five
years prior to the date of application. An appraisal or property profile of the subject property
showing that it was more than five years old would normally suffice as verification. Two- to four unit
properties of any age, new or existing, are eligible in Targeted Areas.
Manufactured homes are also eligible, but they must meet agency guidelines and Program
requirements. To qualify, a manufactured home must be manufactured in a factory after June 15,
1976 that is delivered to a home site in more than one section and affixed on a permanent
foundation. The dimensions of the completed dwelling shall be not less than 20 feet by 40 feet,
the roof must be sloping, and the siding and roofing must be the same as those found in site built
Mobile homes are allowed but must meet be permanently affixed to the ground with a poured
foundation, and taxed as real property.
The following types of properties are not eligible for the Program:
a. Rental homes
b. Cooperative housing
c. Home used as investment property
d. Recreational, vacation or “second” homes
e. Motor homes, campers and similar vehicles
Property being purchased must meet the applicable agency guidelines and be located in the
Eligible Loan Area.

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?