Mortgage Credit Certificate (MCC): A Homebuyer's Tax Advantage

What is the Mortgage Credit Certificate (MCC) Program?

The Mortgage Credit Certificate (MCC) is a federal income tax credit designed to make homeownership more affordable for qualified buyers. The MCC is not a loan or a grant; it is a dollar-for-dollar reduction of your federal income tax liability. This program, administered by the Nevada Rural Housing Authority, can save you thousands of dollars over the life of your loan.

Key Benefits of the MCC Program

• Annual Tax Credit: The MCC allows you to claim a tax credit for a percentage of the mortgage interest you pay each year, up to $2,000 annually.
• Increased Affordability: By reducing your federal tax liability, the MCC can increase your take-home pay, making your monthly mortgage payments more manageable.
• Enhanced Buying Power: Lenders can consider the estimated tax savings as additional income, which can help you qualify for a larger loan.
• Can Be Combined with DPA: The MCC can often be combined with other down payment assistance programs, maximizing your savings.

Eligibility Requirements

To qualify for the Mortgage Credit Certificate program, you typically need to meet the following criteria:

• First-Time Homebuyer: You must not have owned a home in the past three years. This requirement is waived for qualified veterans.
• Income Limits: Your household income must be within the program's limits, which vary by county and household size.
• Purchase Price Limits: The home's purchase price must not exceed the program's limits for the county.
• Primary Residence: The property must be your primary residence.
• New Mortgage: The MCC must be issued with a new mortgage; it cannot be applied to an existing loan.

How to Get Started with the MCC Program

If you're interested in the MCC program, the first step is to connect with a participating lender. Our team can help you understand the program's benefits and connect you with a trusted lender who can guide you through the application process.