Mortgage Credit Certificate Tax Credit Program

Program Eligibility | Interest Rate | Homebuyer Education | How to Apply | MCC FAQ

CalHFA is partnering with local counties to ensure all qualified Californians have access to a Mortgage Credit Certificate (MCC) program. The MCC Tax Credit is a federal credit which can reduce potential federal income tax liability, creating additional net spendable income which borrowers may use toward their monthly mortgage payment. This MCC Tax Credit program may enable first-time homebuyers to convert a portion of their annual mortgage interest into a direct dollar for dollar tax credit on their U.S. individual income tax returns.

Review the sections below to find out more about the CalHFA MCC program.

MCC News & Updates

As of November 17, 2017, a Mortgage Credit Certificate (MCC) may not be used for credit qualifying purposes for any CalHFA first mortgage loan.

CalHFA is not seeking additional MCC Tax Credit Program allocation in 2018 or beyond. CalHFA estimates that the overall allocation from past years is expected to run through the end of 2018. CalHFA-approved lenders may continue offering and reserving MCCs on the eHousingPlus Lender Portal. The availability of funds can be found in real-time on eHousingPlus Lender Portal.

MCC Program

Program Eligibility

Am I eligible to apply for this program?
Review the guidelines below for both “Borrower” and “Property” Requirements to determine if you may be eligible to apply for the CalHFA MCC program.

Borrower Requirements

  • Be a first-time homebuyer. See the definition of a first-time homebuyer.
    • Home is located in a federally designated targeted area
    • Qualified veterans pursuant to the Heroes Earning Assistance and Relief Tax Act of 2008
  • You will need to meet credit, income limits and loan requirements of the lender, insurer, & CalHFA.
  • You will need to live in the home you are purchasing for the entire term of the loan, or until the home is sold or refinanced.

*In the case of conflicting guidelines, the lender must follow the more restrictive.

Property Requirements

  • Sales price of the home cannot exceed CalHFA's sales price limits established for the county in which the property is located
  • There is a five acre maximum on the size of the property
  • Be a single-family, one-unit residence, including approved condominium/PUDs
    • Guest houses, granny units and in-law quarters may be eligible
  • Condominiums must meet the guidelines of the first mortgage
  • Manufactured housing is permitted

*In the case of conflicting guidelines, the lender must follow the more restrictive.

Eligible Counties

The CalHFA MCC Tax Credit program will be available in all areas where an MCC is not currently available through a CalHFA partnering county at the time the loan is originated.

Find out if the CalHFA MCC program is available in your area by viewing this MCC County Resource List.

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MCC Program

Interest Rate

What is the interest rate?
Interest rates will vary depending on your financial circumstances, lender fees, and other factors. Interest rates can also change daily. We recommend that you check with a CalHFA-approved loan officer to receive an accurate rate quote for this program.

CalHFA does not lend money directly to consumers. CalHFA works through and uses approved lenders to qualify consumers and to make all mortgage loans. The fees you pay could be different depending on the lender and the program. View sample Annual Percentage Rates (APRs) here.

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MCC Program

Homebuyer Education Requirement

CalHFA firmly believes that homebuyer education and counseling is critical to the success and happiness of a homeowner, and requires homebuyer education and counseling for first-time homebuyers using a CalHFA program.

Who has to take this Homebuyer Education and Counseling course?

Only one occupying first-time borrower on each loan transaction.

How do I take this education and counseling course?

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MCC Program

How To Apply

How do I apply for this loan program?
Since CalHFA is not a direct lender, our mortgage products are offered through private loan officers who have been approved & trained by our Agency. These loan officers can help you find out more about CalHFA’s programs and guide you through the home buying process.

Visit the Find a Loan Officer tab, to contact a loan officer in your area.

What documents should I have ready when contacting a loan officer?
When initially contacting a loan officer, you may want to have this list of documents and information available to help answer questions that they will ask you:

  • Pay stubs
  • Bank statements
  • Employment history
  • Previous tax returns

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What is a Mortgage Credit Certificate?

Who is eligible to receive an MCC?

How do I determine if I qualify for the MCC program?

How much of a tax credit can be issued under the CalHFA MCC Tax Credit Program?

I have not received my MCC Certificate who should I contact?

I contacted eHousingPlus for my MCC Certificate, but they stated that there has not been an MCC issued through CalHFA for me what can I do?

My house closed escrow six months ago, but I just heard about the MCC Program can I apply now?

My lender informed me that CalHFA would be sending me $200 a month, but I have not received anything yet when can I get my money?

I want to refinance my mortgage how do I keep my MCC in place?

I refinanced my loan six months ago how do I get a corrected MCC Certificate with my new lender's information?

It's time to file my tax returns how do I take advantage of the MCC Certificate?

My tax advisor doesn't know what to do with my MCC Certificate can you please explain how this works?

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