Mortgage Credit Certificates: Boost the Tax Benefits of Owning a Home

Today’s post originally appeared in VHDA’s Spring 2015 eNews. Sign up for VHDA eNews.

We are in the final stages of developing our Mortgage Credit Certificate (MCC) program, which is projected to be available in May. An MCC could save a first-time homebuyer thousands of dollars by reducing the amount of federal income tax they owe.

Unlike an income tax deduction, an MCC is a dollar-for-dollar credit against a person's federal income tax liability. To qualify, homebuyers must be first-time homebuyers, or not have owned a home in the previous three years --but this requirement may be waived if the home is in a federal targeted area. The home must also be used as their principal residence, and maximum income and sales price limits apply.

For complete details including participating lenders, how to become a participating lender, how to apply for an MCC, and contact info if you have questions, please visit vhda.com/MCC.
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