Save up to $2,000 per year with a Mortgage Credit Certificate

Picture of Author: Rich Barnhart

Author: Rich Barnhart

That’s right, you can save up to $2,000 per year on your taxes when you buy a home. All you have to do is qualify for a Mortgage Credit Certificate (MCC) and it’s easy!

Lower Property Taxes

An MCC is a nonrefundable federal income tax credit. The MCC reduces an eligible borrower’s federal income taxes and, in effect, creates additional income for the borrower to use in making mortgage payments. The MCC may help you qualify for larger home or assist you in qualifying for a mortgage loan when you otherwise would not.

Here’s how it works…Homeowners with the MCC are allowed to use UP TO 50% of the annual mortgage interest (up to a maximum of $2,000) AS A DIRECT FEDERAL TAX CREDIT, resulting in a dollar-for-dollar reduction of their annual federal income tax liability. The remainder of the homeowners’ annual mortgage interest will continue to qualify as an itemized tax deduction for federal income tax purposes. Please note that the maximum credit allowed in any year is the lesser of 50% of the annual mortgage interest or $2,000.

Borrowers must be first-time homebuyers who have not owned their principal residence during the last three years.*
*This requirement is waived for homes purchased within a targeted area or by a qualified veteran.

Borrowers must meet normal mortgage underwriting requirements which demonstrate credit worthiness. There are income and home purchase price requirements in this program.

For a 1 to 2 family member household income can not exceed $85,920 and the home cannot cost more than $391,153. Income cannot exceed $100,240 for a 3 family member household and the home sale price cannot exceed $478,076.

See I told you it was easy; very easy!

Please note: There are recapture penalties. For instance you must own and live in the home for 9 years. Just make sure you are fully informed.


  • Have a participating lender pre-qualify you for a first mortgage loan and determine if an MCC benefits you.
  • Locate a home by using a real estate professional such as a local Fort Lauderdale REALTOR®.
  • Make an offer on a qualifying property.
  • Return to your lender and comply with lender requirements.

For Participating lenders here in Broward County and for more information go to


Blog Author:

Rich Barnhart

Rich is the broker and owner of By The Sea Realty and a frequent contributor to the company's real estate blog.

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