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VHDA Mortgage Credit Certificates

Boost the tax benefits of owning a home!

VHDA Mortgage Credit Certificates


Mortgage Credit Certificates

If you’re buying your first home, a Mortgage Credit Certificate (MCC) from VHDA could save you thousands of dollars by reducing the amount of federal income tax you owe. 

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

  • The credit is equal to 20 percent of the annual mortgage interest you pay.
  • The remaining 80 percent may still be taken as a tax deduction.
  • The MCC is effective for the life of your mortgage, as long as you live 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.
  • Sign the Mortgage Credit Certificate Homebuyer Application and Fact Sheet and give to your Lender.
  • Confirm your request on the Single Family Loan and MCC Disclosure at loan application.
  • 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.

If you obtain and use a MCC and then sell your home in the first nine years of homeownership, you may be subject to the federal recapture tax.


Take the next step by applying for a Mortgage Credit Certificate through any approved participating lender.

Find an MCC Lender

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.


If after speaking with your lender you have additional questions, please contact VHDA at: