Mortgage Credit Certificate Program (MCC)

Brief Description : The MCC allows eligible homebuyers to receive a dollar-for-dollar reduction in their federal income taxes of up to 20% of the annual interest paid on their mortgage. Borrowers can file an amended withholding statement with their employer, and increase their monthly take-home pay by the amount of the credit. This additional income can be used to help qualify a borrower for a loan. The MCC can be attached to any loan statewide, except for a loan financed through any other MBOH Program. Please keep in mind that the MCC is not a loan in and of itself - it is a TAX CREDIT.

  • Tax Credit Criteria:
     Federal Income tax credit only - not a State income tax credit
    20% of mortgage interest paid converts to a federal tax credit
    Remaining 80% of mortgage interest remains an eligible itemized deduction
    Maximum annual credit $2,000
    Not a "refundable" tax credit - unused credit can carry forward up to 3 years

  • Borrower Eligibility Criteria:
    Income limits (click here )
    First-time homebuyer(s); waived for targeted area
    Home must be primary residence to claim credit
    No asset limitations
  • Property Criteria:
     Purchase Price Limit of $237,031
    Single Family home, townhouse, or condominium
    Manufactured homes, with or without land
    Limit of 15% use for Business
    Land limited to 35% of value of property
    Maximum parcel size of 40 acres
  • Loan Criteria:
     IRS Loan limit of $237,031
    Buy or build
    Interest rate and loan term set by lender
    IRS Recapture potential
  • Underwriting Criteria:
    Set by lender
  • Down payment Sources:
    Any source, other than the seller, that is approved by the lender
  • Mortgage Insurance Information:
    Set by lender
  • Reservation Process:
    Lender on Line or via fax
    180 days reservation limit for either new or existing homes


  • updated 5/10/2007

    This is a summary of the MBOH program only. For a complete copy of the terms and conditions see the Regular Mortgage Purchase and Servicing Guide and the MCC Program guide.