• Leave a Review
  • Blog

Joe Gonzalez Team

CrossCountry Mortgage

  • Home
  • About
  • Resources
    • Calculator
    • Refinancing
    • First Time Buyer Tips
    • First Time Seller Tips
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Programs
    • Loan Process
    • Mortgage FAQ
    • Mortgage Glossary
  • Apply
  • Rate Quote
  • Send Secure Documents
  • Contact

Qualifying For A Mortgage Credit Certificate

November 18, 2021 by Joe Gonzalez

Qualifying For A Mortgage Credit CertificatePurchasing a house can be expensive, but there are measures in place to make it easier, particularly for people buying a home for the first time. One option is a mortgage credit certificate. What is the certificate, and how does it work?

A Mortgage Certificate Is A Tax Credit

A mortgage credit certificate, usually shortened to MCC, is a credit issued to first-time homebuyers by the local or state government. This certificate allows first-time homeowners to claim a federal tax credit for mortgage interest paid on the loan, with a limit of up to $2,000. When someone takes out a mortgage, the majority of the payments go toward interest. This credit certificate allows homeowners to recover some of the interest paid in the form of a tax credit.

Who Qualifies For This Credit?

Not every homeowner will qualify for this certificate. Usually, this is a certificate reserved for low-income people purchasing a home for the first time. Or, these credits are limited to people who purchase a house in a certain area. Usually, these programs are run by the states. Every state has a slightly different income limit for people purchasing a home. Everyone needs to check the local rules and regulations set by their states.

Is The Certificate Different From A Tax Deduction?

Yes, the mortgage credit certificate is different from a tax deduction. A tax credit is directly applied to the amount of money someone owes in taxes. In contrast, a tax deduction is a deduction from someone’s gross taxable income. A tax credit is better for tax purposes than a tax deduction. It is possible for someone to be awarded a mortgage credit certificate and deduct the interest paid on the mortgage from their taxes. Anyone who has questions about how deductions and credits work should work with a tax professional. 

Do Not Leave Money On The Table

It is true that purchasing a house for the first time can be a challenge; however, there are financial measures in place to make this process easier. Anyone who is buying a home for the first time should take a look at the state qualifications for the mortgage credit certificate program. This could help people save money on their taxes.

 

Joe Gonzalez

Filed Under: Mortgage Tagged With: Mortgage, Mortgage Certificate, Tax Credit

Joe Gonzalez Headshot

Contact Joe


Senior Loan Officer
Call Phone (610) 355-8039
Email: joe@joegonzalez.net
NMLS #126036

Connect with Me

Browse articles by category

Archives

Quick Links

  • Accessibility Statement
  • Privacy Policy
  • Blog
  • Contact Us

Our Location


625 West Ridge Pike Building C Suite 100
Conshohocken, PA 19428
Joe Gonzalez Team - Cross Country Mortgage, Inc. NMLS 3029 | NMLS 1854092 | NMLS 126036

Return to top of page

Copyright © 2023 Joe Gonzalez Team. All rights reserved.   Log In