MCC Tax Credit

MCC tax credit for first time home buyers



First Time Home Buyers!

ASK FOR THE MCC tax credit! This one tax credit first time home buyers can use. A first time home buyer is ANYONE that has not owned a property in the last three years. Even if you owned a house more than a few years ago, you would still qualify) The Mortgage Credit Certificate (MCC) is one such program. The MCC program gives you a tax credit of 20% of the mortgage interest you pay in a year. The example below is for a $325,000 purchase price with an interest rate of 4%.

Without an MCC


Annual Income
Mortgage Interest
to deduct
Taxable Income
(assume 15% tax rate)
Federal Income Tax


Total Income Tax Owed

$50,000
$10,000

$40,000

$6,000


$6,000

With an MCC


Annual Income
Mortgage Interest
to deduct (80% total)
Taxable Income
(assume 15% tax rate)
Federal Income Tax
Minus 20% MCC Credit


Total Income Tax Owed


Net gain from MCC
(First Year)

$50,000
$8,000

$42,000

$6,300
($2,000)


$4,300


$1,700

Source: https://www.fdic.gov/consumers/community/mortgagelending/guide/part_2_docs/mortgage_tax_credit.pdf 

The annual savings of $1,700 is the same as $167 per month. This is equivalent to getting an interest rate of 3.375%.

A SAVINGS OF .625% IN INTEREST!!!

All you need in Orange County to qualify for this program is to make less than $131,160 for one of two people and be a first time home buyer of an owner occupied condo or house.

ASK ME HOW: 949-466-5568