tax credits & government programs

mortgage credit certificate program

Mortgage Credit Certificates (MCCs) can help some families realize the dream of homeownership. An MCC creates an income tax deduction that reduces a household's federal income tax liability and allows the household to have more available income to make mortgage payments.

 

How Does the Mortgage Credit Work?

Homebuyers who qualify for the program receive a Mortgage Credit Certificate from OHFA, which can be used to reduce their household's tax burden every year for the life of their mortgage loan. With an MCC, a percentage of what you pay in mortgage interest (20, 25, or 30%) becomes a tax credit that you can deduct dollar-for-dollar from your income tax liability. The remaining 80, 75, or 70% of your mortgage interest continues to qualify as an itemized tax deduction, as long as you have sufficient tax liability. The MCC Program cannot be used in conjunction with OHFA's First-Time Homebuyer Program.

How Big Will My Tax Credit Be?

The percentage of the annual tax credit is based on the location and/or status of your property: 20% credit for non-target area homes 25% credit for target area homes, 30% for Real Estate Owned (REO) properties (30% of the purchase of a single family property from HUD, Fannie Mae, Freddie Mac, VA, USDA-RD, or a financial institution that acquired the property through foreclosure).

 

How long with this program last?

Funds are limited for this program, and are allocated on a target/non-target/REO basis. Once funds have run out, the program has ended until new funding is allocated.

For more information, contact me and and/or visit: http://www.ohiohome.org/mcc/default.aspx

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free information for you

For a no obligation, no cost, look at what you could potentially buy in the Cleveland area, please send me an email. I would be more than happy to send you information on what is currently available in the market, as well as set you up with a finance manager for a no obligation, no cost, prequalification (typically takes only 15 minutes).

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