It’s Tax Time: How the Mortgage Credit Certificate Can Help

Madison Fisler Lewis
couple of homeowners

Tax Day is almost here, and homeowners are looking for ways to save big on their taxes by leveraging as many tax breaks and deductions as possible. However, if you are in the market to purchase your first home, there is one tax break that you don’t want to miss! The Mortgage Credit Certificate, administered by the North Carolina Housing Finance Agency, can save you big on your taxes every year for the life of your loan when you secure it during your home purchase.

What is the Mortgage Credit Certificate?
The Mortgage Credit Certificate, or MCC, is a tax credit that enables eligible first-time home buyers and military veterans to save up to $2,000 a year on their federal taxes. This credit can leave you with more money in your pocket every year for the entire life of your loan.

How Does the Mortgage Credit Certificate Affect Taxes?
If you qualify, you can claim a federal tax credit for 30% of your annual interest on an existing home or 50% on a new home, up to $2,000 annually. This leaves more money in your pocket to pay your mortgage during tax time, and can make your home more affordable. Even better, you can still claim a mortgage interest deduction for the remaining percentage of the interest you have paid, making your tax liability even lower!

Do I Qualify for the Mortgage Credit Certificate?
You may qualify for the Mortgage Credit Certificate if you are:

  • A first-time home buyer or military veteran
  • You meet the income and sales price limits
  • You are purchasing a new or existing home in North Carolina
  • You occupy the home as your principal residence within 60 days of closing
  • You are a legal resident of the United States

Eligible properties are:

  • New and previously owned single-family homes
  • Townhouses
  • Condominiums
  • New or used manufactured homes

How Do I Get Started?
If you are interested in the tax saving benefits of the Mortgage Credit Certificate, getting started is easy. When you are ready to purchase your home, talk to your lender to see if you qualify, and they can reserve a Mortgage Credit Certificate for you before you close on your home.

Ready to get started? Browse our list of participating lenders to find one near you! Learn more at www.nchfa.com/.

Press &
Investors

North Carolina Housing Finance Agency / 3508 Bush Street / Raleigh, NC 27609 / 919-877-5700

Disclaimer (please scroll and read, then proceed below)

All information contained on the following Web pages is obtained from the Agency’s books and records, and is believed to be accurate and reliable. Reference should be made to the official statement and operative documents of each series of bonds referred to herein for complete information on that issue. Because of the possibility of human and mechanical error as well as other factors, this information is provided "as is" without warranty of any kind and no representation or warranty, expressed or implied, is made, nor should any be inferred, as to the accuracy, timeliness, or completeness of this information. Under no circumstances shall North Carolina Housing Finance Agency have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any error (on account of neglect or otherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analyzing, editing, transcribing, transmitting, communicating or delivering this information, or (b) any direct, indirect, special, consequential, or incidental damages whatsoever, even if North Carolina Housing Finance Agency is advised in advance of the possibility of such damages, resulting from the use of, or inability to use, any such information. This information relates to bond issues of the North Carolina Housing Finance Agency that have been sold and distributed in underwritten public offerings described in the related official statements. Each viewer of the aforementioned information acknowledges that (i) the North Carolina Housing Finance Agency is not now by this document offering any bonds or other securities, nor soliciting an offer to buy any securities, (ii) this information is not to be construed as any description of the North Carolina Housing Finance Agency-such offerings are only made pursuant to the appropriate official statements of the North Carolina Housing Finance Agency, (iii) the information provided speaks only as of the date thereof and the North Carolina Housing Finance Agency has not in any way undertaken to update such information, and (iv) no representation is made as to the propriety or legality of any secondary market trading of the bonds or other securities of the North Carolina Housing Finance Agency by anyone in any jurisdiction. The financial condition of the North Carolina Housing Finance Agency may have changed since the date this information was prepared.

© NCHFA 2023. All rights reserved. View Our Privacy Policy and Our Terms and Conditions.