Mortgage Credit Certificates

A MCC is a federal tax credit designed to assist a borrower seeking affordable homeownership that reduces federal tax liability of the borrower.

This tax credit allows an eligible borrower to write off a portion of the annual interest paid on the mortgage each year they occupy the home as their primary residence - Up to $2000

This tax credit is based on the first mortgage loan amount

• Borrower may choose to take the tax credit at the end of the year (Example)
  • MTG Amount x Interest Rate x MCC Credit Rate
    $100,000.00 x 4.25% x 20% = $850.00
    Borrower would be able to claim $850.00 annual tax credit.
    

• Borrower may choose to revise their W-4 withholdings form to increase their take home pay.  If borrower chooses to increase take home pay the annual tax credit is divided out over 12 months giving the borrower an additional $70.83 per month. $850.00 / 12 months = $70.83 per month
  Borrower would need to contact their HR department to modify their withholdings.

MCC Credit Rates

MCC Fees The reservation fee is .50% of the final loan amount Other Features Home must be borrowers principal residence/Single family Non-occupant co-borrowers are not allowed Cannot be used with the IHCDA First Home programs