Mortgage Credit Certificate (MCC) |
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The Mortgage Credit Certificate program allows first-time home buyers to take advantage of a special federal income tax credit. This program gives buyers a distinct tax advantage after they purchase the home. The amount of the credit is tied to a local formula that every city with an MCC program must follow. An MCC credit, which can give its owners a tax credit (as opposed to a deduction) of up to $2,000 per year, reduces the borrower's federal tax liability by an amount tied to how much one pays in annual mortgage interest. Both the borrower's income, the purchase price of the home, and the location of the home must fall within established guidelines. To see if your community has an MCC program, call your local housing or redevelopment agency. You also may inquire with your real estate broker or the local association of realtors. |
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