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 Montana Housing Program.

Please keep in mind that the MCC is not a loan - it is a TAX CREDIT.


Program Offers

  • 20% of annual mortgage interest paid converts to a federal tax credit
    • Federal income tax credit only – NOT a state income tax credit
    • Non-refundable but unused credit can carry forward 3 years
    • Maximum federal tax credit is $2,000
  • 80% remaining mortgage interest is eligible as an itemized deduction
  • Underwriting criteria set by lender including
    • Interest rate & loan term
    • Mortgage insurance
    • Down payment sources (other than the seller)

Borrower Eligibility

  • Must be a first time homebuyer
    • Not owned a principal residence any time in past three years
    • Homeownership requirement not applicable in targeted areas
      • Counties: Blaine, Sanders, Deer Lodge, Silver Bow, Flathead, Mineral, Missoula & Hill
      • Census Tracts: Gallatin County 6 & 11.01 and Lincoln County 2
      • City of Great Falls
  • Must be at or below annual household Income limits
    • Includes ALL people 18+ years expected to live in residence
  • Buy/Sell amount cannot exceed Purchase Price Limits

Program Requirements

  • Purchase loans only for MCC issuance
    • Re-issuance allowed for MCC
  • Maintained owner-occupancy required to use MCC tax credit
  • IRS Recapture tax provisions apply
  • $750 application fee ($250 for lender & $500 for MBOH)

Property Requirements

  • Single family, “fee simple” residential property
  • Attached land of residence must maintain basic livability & not provide income source
  • Manufactured homes eligible if Post-1976, de-titled & on a permanent foundation
    • Appearance & functionality of a stick build house
  • Condominiums & Townhomes in multiple dwelling units structure
  • New construction allowed; property & improvements must be completed prior to closing  


 Mortgage Credit Certificate Program (MCC) Re-issuance

In the event a Borrower who receives an MCC under the MCC Program, or any previous MCC program of the Board, refinances the related Note, the Board may (but is under no obligation to) elect to reissue such MCC in accordance with such terms and conditions (including without limitation those imposed by the Code) as the Board may specify. A form of an MCC Reissuance Application and Affidavit is attached as Exhibit J.

All Mortgage Credit Certificate holders who have refinanced their MCC loan, please read the following documents:

Memo to explain re-issuance of MCC after refinancing

MCC Re-issuance Application and Affidavit (Exhibit J)


Additional Useful Information:

Mortgage Credit Certificate Guide

Quick Reference Guide


This is a summary of the Montana Housing program only. For a complete copy of the terms and conditions see the Regular Mortgage Purchase and Servicing Guide and the MCC Program Guide..  Additional resources not linked to on this page are available by contacting Montana Housing at 406-841-2840 and asking for a Program Specialist.


Return to HOMEBUYERS Information        Return to HOMEOWNERS Information        Return to RENTERS Information        Return to MULTIFAMILY HOUSING DEVELOPMENT Information        Return to COMMUNITY PARTNER Information        Return to INVESTORS Information

301 S. PARK AVE, STE 240 | PO BOX 200528 | HELENA, MT 59620-0528 | P: 406.841.2840 | F: 406.841.2841 | TDD: 406.841.2702 | TOLL FREE: 800.761.6264