What are MCCs?

Mortgage Credit Certificate (MCC) is an assistance program from the federal government, mostly for first-time buyers with moderate income. The program, which is only available in certain states, allows those who qualify to get a tax credit of the 30% annual interest paid on the mortgage, up to $2,000.

According to the National Council of State Housing (NCSHA), ”after an MCC is issued, the homeowner receives a tax credit equal to the product of the mortgage amount, the mortgage interest rate, and the MCC percentage” – that rate is administered by the Housing Finance Agency.

So, now you are wondering who is eligible for this program; mostly first-time home buyers, who meet a certain income, also the value of the property has a range, and they must use that home as their primary residence.

This program was created by the Deficit Reduction Act of 1984 and is administered by the State and local HFAs. In 2019, twenty-eight State HFAs issued 22,298 MCCs, according to the NCSHA website. Without a doubt, this is a great resource for first-time buyers, during these times when properties are reaching high prices, inventories hitting historical lows, and see some money returned.

Sources: https://www.ncsha.org/resource/mortgage-credit-certificate-program-qa/