{"id":15693,"date":"2018-01-26T15:38:57","date_gmt":"2018-01-26T23:38:57","guid":{"rendered":"https:\/\/www.hayden-homes.com\/?p=15693"},"modified":"2023-06-13T12:15:04","modified_gmt":"2023-06-13T20:15:04","slug":"blog-mortgage-credit-certificate","status":"publish","type":"post","link":"https:\/\/www.hayden-homes.com\/blog\/blog-mortgage-credit-certificate\/","title":{"rendered":"What Is a Mortgage Credit Certificate and How Can It Help Me as a First-time Homebuyer?"},"content":{"rendered":"

\"First-Time-homebuyers-using-an-IRA-photo\"<\/a>If you\u2019re thinking about buying a home, or have recently bought a home for the first time, understanding the Mortgage Credit Certificate program could help you to save money when it comes time to pay your taxes, and could even help you to qualify for a loan. Here\u2019s what you need to know about the mortgage credit certificate program and how it may help you as a first-time homebuyer.
\nUnderstanding Mortgage Credit Certificate: The Basics<\/strong>
\nAs explained by the National Homebuyers Fund, Inc.<\/a>, a mortgage credit certificate–or MCC–is a tax credit from the Internal Revenue Service (IRS) that reduces how much an individual must pay in federal taxes by subsidizing the monthly mortgage payment. The site further explains that the benefits are twofold: first, the MCC is based on the amount of interest that the homebuyer pays annually, and can also help the buyer to qualify for the loan initially because it increases net earnings and decreases tax liability. Indeed, the reduced tax liability is a dollar-for-dollar amount based on the mortgage interest paid yearly (as a note, there is a cap on the amount of tax liability that can be reduced).
\nThe purpose of an MCC is to help lower-income families afford homeownership for the first time.
\nState and Local Governments and MCC Programs<\/strong>
\nAn MCC should not be confused with the federal first-time homebuyer credit. Unfortunately, the federal first-time homebuyer credit of $8,000 offered by the IRS has expired, but there are still many state and local governments that offer the MCC for residents. What\u2019s more, the MCC continues year-after-year, so long as you continue living in your home, and continue paying your loan. Here\u2019s how eligibility for the MCC typically works<\/a>:<\/p>\n