Q: What Are Mortgage Credit Certificates?



A: A mortgage credit certificate, or MCC, makes it easier for eligible buyers to qualify for a mortgage loan.  Offered by many city and county governments, they allow first-time buyers to take advantage of a special federal income tax write-off.  

Under MCC programs, the lender can reduce the housing expense ratio – the percentage of gross monthly income applied toward housing expenses – by the amount of the tax savings. Normally, lenders reject loans if the housing expense ratio is too high.

Program requirements for MCCs vary, although most adhere to the following guidelines:

More information is available by calling your local housing or redevelopment agency, or contacting your real estate agent.


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