Posted by Apex Home Loans ● August 5, 2019

4 Things Homebuyers Need to Know About the Mortgage Credit Certificate


What is a Mortgage Credit Certificate (MCC)?

A Mortgage Credit Certificate is a certificate that allows homeowners a tax credit on a percentage of the interest paid on a mortgage for that tax year. To take advantage of a Mortgage Credit Certificate, buyers must meet income, home purchase, and mortgage requirements. These requirements may vary by state.

What’s the Purpose of a Mortgage Credit Certificate?

In a nutshell, the primary purpose of the MCC is to make it easier for eligible first-time home buyers to qualify for a mortgage, and, to help them reduce their taxes. It’s also used to stimulate redevelopment in some special circumstances.

How does a Mortgage Credit Certificate work?

Eligible homebuyers may use 40 percent of their annual mortgage interest paid, up to $2,000, as a tax credit. Borrowers may also claim their remaining annual paid mortgage interest as a tax deduction. A Mortgage Credit Certificate tax credit remains and option for the home buyer over the life of the loan provided that the home is the buyer's primary residence.

How do I know if a Mortgage Credit Certificate is right for me?

The MCC tax credit can help pay for a home, but, it’s not for everyone. You may be a good candidate if you:

  • Have medium to high income
  • Are opening a fairly large loan
  • Pay at least as much in federal taxes as your estimated MCC credit
  • Are in a higher tax bracket

Are You Eligible for a Mortgage Credit Certificate? 

Apex Home Loans can help you find out.  Please feel free to contact us for answers to all of your home loan questions.  


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Topics: First Time Home Buyer, mortgage credit certificate, homebuyers, mortgage credit