The Mortgage Tax Credit Certificate is an amazing opportunity to get up to $2,000 back per year as a tax credit for the life of your mortgage. However, there are state-by-state requirements to consider as not everyone is or can be qualified, and it varies from state to state.
MCC Tax Credit Basics
The MCC Tax Credit is a credit designed for new homeowners who are getting a mortgage on their primary residence. Though there are income limits and house price limits, almost everyone can take advantage of this program as it works with FHA, VA, USDA, and conventional loans.
However, not only is it state to state, it’s also lender to lender. So while it might be available in your state, your lender might not know or tell you about it as they don’t participate. In addition, there are a few things to keep in mind as while you could qualify; you might not want to take part in it.
Why Obtain the MCC Tax Credit
You can get as much as a $2,000 tax credit each year that you have a mortgage. This means money back on your taxes that could be as much as $60,000 on the life of the loan!
Why You Might Not Obtain the MCC Tax Credit
However, some variables could push you to avoid this tax credit. According to the IRS, if you meet all three of these requirements at the time of the sale of your home, then you might actually have to pay back some of the tax credit you’ve gotten (called a recapture.)
If you think you might qualify for all three of these when you sell your home, think hard about whether or not the MCC tax credit is for you as you could be paying back all of the tax credits that you earned.
Now, we’re going to go through each state and link to the resource you’ll need to learn more about the MCC Tax Credit for your potential future home.
Note: This blog post will be updated with a basic overview and link to a longer state-by-state individual blog post as we work our way through individual deep dives.
States With a State-Wide MCC Program
States Without State-Wide Programs