Mortgage Credit Certificate Program

MCC Program Description

A MCC Provides the income eligible First-time homebuyer with an opportunity to reduce the amount of federal income tax otherwise due by an amount equal to 15% of the mortgage interest payments at a dollar for dollar credit. The remaining 85% can be taken as the usual allowable deduction of the itemized return. The result increases the household’s overall income and ability to qualify for a mortgage loan.

The Mortgage Credit Certificate "MCC" Program, , provides assistance to first-time homebuyers for the purchase of owner-occupied single family homes, townhomes, and condominiums b by reducing the amount of federal income taxes otherwise due (but not to exceed the amount of federal taxes owed for the year after other credits and deductions have been taken). However, the unused tax credits can be carried forward three years, until used.

The federal income tax advantage provided by the MCC for a homebuyer who keeps the same mortgage loan and lives in the same house in the Alameda County will be equal to 15% of the mortgage interest paid annually on a dollar for dollar basis. This means the total of 15% of your mortgage interest is deducted directly from your annual tax debt. The remaining 85% of your mortgage interest is taken as a deduction from your gross income in the usual manner. This allows you to qualify for a greater mortgage amount with the same income. There are specific eligibility requirements to qualify for a MCC Certificate:

To see if you are eligible for a MCC, you must contact an eligible Participating Lender.