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 a year. The MCC is a non-refundable tax credit, so a homebuyer must have tax liability to take advantage of it. A homebuyer is eligible to receive the tax credit for as long as he or she owns and lives in the home, pays interest on the mortgage, and has a tax liability.
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.
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 $150,000, 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 almost $10,000 in tax credits.|