A Mortgage Credit Certificate (MCC) issued by Idaho Housing and Finance Association allows a homebuyer to claim a federal tax credit for 35% of the mortgage interest paid per year, up to $2,000 each year. The MCC is an actual tax credit, to use toward any federal taxes the borrower may owe, and it can be rolled over for up to 3 years. A homebuyer may be eligible to receive the tax credit for as long as he or she occupies the home. Borrowers will need to reach out to their tax professionals for specific advice regarding the MCC/Tax Credit.
Who qualifies for an MCC?
- The program is open to first-time homebuyers, meaning someone who has not owned a primary residence in at least three years. This requirement is waived if the homebuyer is purchasing in a targeted county.
- Idaho Housing’s First Loan program household income limits apply.
- Idaho Housing’s First Loan program home sales price limits apply.
- Owner-occupancy is required.
- Tax Credit MCC program CANNOT be used together with the First Loan product.
How to apply for an MCC.
When is an MCC issued?
How is the MCC used?
Example of tax credit benefits to borrowers:(Based on $200,000, 30‐year mortgage at 4% interest rate)
|Year||Mortgage Interest Paid||35% Tax Credit|
|The tax credit is for the life of the loan; this example shows that in just the first five years a borrower could receive $10,000 in tax credits.|