How does the Mortgage Credit Certificate work?
With a Mortgage Credit Certificate (MCC), for example, 35% of the mortgage interest is a tax
credit—a dollar-for-dollar reduction of income tax liability for the life of the loan. The remaining
65% mortgage interest continues to qualify as an itemized tax deduction for the homebuyer.
Prospective homeowners can obtain an MCC when applying for a mortgage loan at any
participating lender. The mortgage loan must be new, not the refinancing of an existing mortgage
loan. Lenders vary in their requirements for mortgage loans.

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?