Program Details
Mortgage Credit Certificate Program
A federally authorized program created to reduce effective interest costs for qualifying homebuyers.
What is an MCC?
MCCs allow the homebuyer to qualify for a federal income tax credit equal to a percentage of the interest paid on their home loan each year, up to a maximum of $2,000 per year.
MCC holders still qualify for a regular deduction of the remaining interest paid on their home loan, providing a double benefit.
How It Works — Side by Side
The table below shows how an MCC reduces your effective monthly mortgage payment on a $150,000 loan.
| Detail | Without MCC | With MCC |
|---|---|---|
| Mortgage Amount | $150,000 | $150,000 |
| Mortgage Interest Rate | 6.50% | 6.50% |
| Monthly Mortgage Payment | $948.10 | $948.10 |
| MCC Rate | None | 25% |
| Monthly Credit Amount (1st Year)* | None | $166.67 |
| Effective Monthly Payment (1st Year) | $948.10 | $781.44 |
*Annual Credit Limit of $2,000