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Potential federal tax credit
The credit may reduce federal income tax liability, subject to the certificate's rate, federal rules and your tax circumstances.
Resources / Mortgage Credit Certificate
Homebuyer tax-credit education
Mortgage Credit Certificates. Know the potential benefit.
A Mortgage Credit Certificate (MCC) may help an eligible homebuyer reduce federal income taxes through a credit based on qualifying mortgage interest. Programs are limited and depend on local funding.
Understanding MCCs
A tax credit designed to support homeownership
An MCC is not a mortgage loan or a down payment grant. When an issuing agency has funding, qualified buyers may receive a certificate that provides a federal tax credit related to mortgage interest paid.
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For eligible homebuyers
Programs generally have first-time buyer, income, purchase price, location and primary-residence requirements.
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Funding must be available
MCCs are issued by participating agencies, and applications may be unavailable when funding has been exhausted.
The basics
How might an MCC work?
For example, some California MCC programs use a 20% credit rate. The actual benefit depends on eligible mortgage interest, applicable tax limits, and the specific certificate.
- Apply through a participating lender: The MCC application is generally coordinated with a qualifying home purchase.
- Confirm local requirements: Eligibility and availability vary by issuing agency and location.
- Review tax treatment: A tax professional can explain credit limitations, deductions and any carryforward rules.
- Plan before closing: Programs may require an MCC commitment before the mortgage closes.
Important availability update
Several California agencies, including GSFA, currently report that their MCC funds are fully allocated. This page is educational and does not represent an offer of an available MCC program.
Quick answers
Common questions about MCCs
Is an MCC the same as down payment assistance?
No. An MCC is a potential federal income tax credit. Down payment assistance programs provide a different type of benefit and have separate eligibility requirements.
Is an MCC currently available in California?
Availability depends on the issuing agency. GSFA and several local agencies currently report exhausted or fully allocated MCC funds. Check with the applicable program administrator before making plans.
Does everyone receive the full credit amount?
No. Your federal income tax liability, certificate rate and applicable tax rules may limit the benefit. Consult a qualified tax professional for personal tax guidance.
Can an MCC help me qualify for a mortgage?
Some mortgage underwriting programs permit eligible, documented MCC income to be considered in qualifying calculations. Lender and program rules apply.
What happens if I refinance?
Some issuing agencies offer a reissued MCC for qualifying refinances. Contact the original certificate issuer before refinancing to learn whether reissuance is possible.
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Even if an MCC is not currently available in your area, we can discuss other mortgage and homebuyer programs that may fit your goals.
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Loan Application →Contact UsProgram availability, tax benefits and loan approval are not guaranteed. This page is not tax advice.
