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VHDA Mortgage Credit Certificates

Boost the tax benefits of owning a home!

VHDA Mortgage Credit Certificates





A Mortgage Credit Certificate (MCC) from VHDA could save your first-time homebuyer clients thousands of dollars by reducing the amount of federal income tax they owe. But, it’s important to understand how MCCs work, and the requirements and limitations.

Unlike an income tax deduction, an MCC is a dollar-for-dollar credit against federal income tax liability:

  • The credit is equal to 20 percent of the annual mortgage interest paid.
  • The remaining 80 percent may still be taken as a tax deduction.
  • The MCC is effective for the life of a mortgage, as long as the homebuyer lives in the home.


 To be eligible for an MCC, homebuyers must:

  • Apply for an MCC with an approved lender and receive a commitment from VHDA prior to closing.
  • Be a first-time homebuyer, or not owned a home as a primary residence within the past three years. (This requirement may be waived if purchasing a home in a federal targeted area.)
  • Have income at or below the maximum household income limits.
  • Purchase a home below the maximum sales price/loan limits.
  • Use the home as their principal residence.


Homebuyers who obtain and use an MCC and then sell their home in the first nine years of homeownership, may be subject to federal recapture tax.


VHDA determines whether homebuyers qualify for MCCs under the Internal Revenue Code, but homebuyers must determine for themselves whether an MCC will save them money and how valuable an MCC will be for them over the life of their loan. VHDA cannot and does not give any tax advice to anyone. Consult with your tax advisor.


Program Guidelines, Forms and Resources


Please use the Marketing Resources below to educate your clients on the ins and outs of MCCs.


Social Media Post – Write your own intro to our MCC video and share it on your social media sites, or simply cut, paste and edit the following sample text. Be sure to enter your own contact info where indicated, and include the link to the video:

If you’re a first-time homebuyer, a Mortgage Credit Certificate (MCC) from VHDA could save you thousands of dollars by reducing the amount of federal income tax you owe. Contact me at 000-000-0000 for information!


MCC Flyer – You can download and print out this educational flyer to share with your clients. It includes details about the MCC program such as sales price and income limits and how to find a VHDA-approved lender.

> Get the flyer
> Get a customizable flyer (add your own contact info to back side)


MCC Savings Tax Example – See example to illustrate potential tax benefits of an MCC. Consult with your tax advisor.

> Get example of tax forms


Questions About the MCC Program? To speak with a VHDA MCC expert, please contact Loan Programs Manager Janice Burgess at 804-343-5926 or Assistant Director, Homeownership Programs Toni Ostrowski at 804-343-5982.


Mailing address:
Virginia Housing Development Authority
Attn: MCC Department
601 S. Belvidere St.
Richmond, VA 23220





NOTE: You will need Adobe’s Acrobat Reader (.pdf), and/or Microsoft Office Software in order to view some of the documents on this page.

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