Mortgage Credit Certificate Tax Credit Program (MCC)
CalHFA is partnering with local counties to ensure all qualified Californians have access to a Mortgage Credit Certificate (MCC) program. The MCC Tax Credit is a federal credit which can reduce potential federal income tax liability, creating additional net spendable income which borrowers may use toward their monthly mortgage payment. This MCC Tax Credit program may enable first-time homebuyers to convert a portion of their annual mortgage interest into a direct dollar for dollar tax credit on their U.S. individual income tax returns.
Review the sections below to find out more about the CalHFA MCC program.
Am I eligible to apply for this program?
Review the guidelines below for both “Borrower” and “Property” Requirements to determine if you may be eligible to apply for the CalHFA MCC program.
- You must be a U.S. citizen, permanent resident or other qualified alien.
- Be a first-time homebuyer. See the definition of a first-time homebuyer.
- Exception to first-time homebuyer requirements:
- Home is located in a federally designated targeted area
- Qualified veterans pursuant to the Heroes Earning Assistance and Relief Tax Act of 2008
- You will need to meet credit, income limits and loan requirements of the lender, insurer, & CalHFA.
- You will need to live in the home you are purchasing for the entire term of the loan, or until the home is sold or refinanced.
- The sales price of the home must be less than the allowable sales price limits in the county in which you are purchasing a home.
- There is a five acre maximum on the size of the property.
- The home must be a single family residence (detached).
- The home can be a detached unit within a planned unit development (PUD).
- The home can be a condominium or attached unit in a PUD.
- Property must meet the requirements of CalHFA , the Lender and the mortgage insurer/guarantor
- Properties having a guest house, “granny” units, “in-law” quarters, and/or separate units containing kitchen facilities are not eligible
The CalHFA MCC Tax Credit program will be available in all areas where an MCC is not currently available through a CalHFA partnering county at the time the loan is originated.
Find out if the CalHFA MCC program is available in your area by viewing this MCC County Resource List.
How To Apply
How do I apply for this loan program?
Since CalHFA is not a direct lender, our mortgage products are offered through private loan officers who have been approved & trained by our Agency. These loan officers can help you find out more about CalHFA’s programs and guide you through the home buying process.
Contact an MCC-Participating Loan Officer.
Please note that a Mortgage Credit Certificate may have a significant impact on your federal tax return. CalHFA strongly urges you to contact a tax professional if you are considering purchasing a home using a Mortgage Credit Certificate.
What documents should I have ready when contacting a loan officer?
When initially contacting a loan officer, you may want to have the documents on the list below to help answer questions that loan officers’ may ask you:
- Pay stubs
- Bank statements
- Employment history
- Previous tax returns