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.
- 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.|