What is a Mortgage Credit Certificate? A Mortgage Credit Certificate allows the homebuyer to claim a tax credit for some portion of the mortgage interest paid per year. It is a dollar for dollar reduction against their federal tax liability. Note: The Mortgage Interest Credit (MCC) is a non-refundable tax credit, therefore, the Homebuyer MUST have tax liability in order to take advantage of the tax credit.
- meet income and home purchase requirements;
- have not owned a home as primary residence in the past three (3) years;
- meet the qualifying requirements of the mortgage loan;
- will use the home as their principal/primary residence.
Note: The MCC may not be used in connection with the refinancing of an existing loan. Targeted Areas