Mortgage Credit Certificate

A Mortgage Credit Certificate (MCC) is a tax credit that reduces your federal income tax liability. The credit can help you qualify for a larger sales price and/or help you make your mortgage payments more affordable. The MCC allows for an additional tax credit of up to 20% of the annual mortgage interest paid. This amount is used to specifically reduce the amount of overall taxes owed. It is in addition to the normal annual mortgage interest deduction. For instance:

Loan amount: $100,000
Interest Rate: 6%
1st Year Interest paid: $6000
MCC 20% Credit = $1200

In the above example, the $1200 additional tax credit would be applied to your overall tax liability until there is no tax liability. This will assist with either a larger refund or give you the ability to withhold less taxes from your paychecks throughout the year. Contact your CPA or tax preparer for further details.

Participants must meet income, credit,  income and purchase price restrictions. Homebuyer education is recommended, but not required. For additional information, see City of Tucson IDA website or Family Housing Resources.

To determine your qualification for the MCC and to see the difference it can make for you, contact us today!