But there is a little-known federal income tax credit for home buyers that can help you buy a home. It’s called the Mortgage Credit Certification program MCC for short.
Mortgage Credit Certificate, is a certificate issued by certain state or local governments that allows a taxpayer to claim a tax credit for some portion of their mortgage interest each year.
The MCC program is designed to help first-time homebuyers offset a portion of their mortgage interest on a new mortgage as a way to help homebuyers qualify for a loan.Since it is a tax credit and not a tax deduction, lenders will often use the estimated amount of the credit on a monthly basis as additional income to help the potential borrower qualify for a loan.
Applications are accepted on a first-come, first-served basis by a certain lenders. The lender will establish all underwriting criteria, including interest rate, down payment requirement, term, fees, points, and closing costs. .
There is a nonrefundable MCC fee is $650 and it is collected at the time of loan closing. You must also complete an approved homebuyer education course providing you with the steps to buying your home.
As with any program, there are qualifying rules and regulations. It needs to be a New Loan, and there are income limitations that vary depending on the county you live in. Here in Whatcom County it looks like $65,000 for one or two-person family and $75,000 for three or more person family, the acquisition cost of single family residents not exceeding $235,000.
There also looks to be a $2000 limit. Contact your lender to see if you qualify. I’d be glad to help you find a good lender that can help you as well.
If you have any questions or want to see any Whatcom County or Bellingham Real Estate feel free to email me at or give me a call at 360-739-6981