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First-time Homebuyer Tax Credit through the Mortgage Credit Certificate (MCC) Program

To be eligible, you must:

  • Be a first-time homebuyer (or have not owned a home in three years)
  • Qualify for a home mortgage
  • Meet income limits
  • Plan to live in the home
  • Have a federal income tax liability

Next Steps:

  • Contact a tax professional to see if this program would benefit you.
  • Find a lender near you to see if you qualify.  You must apply for the MCC Program before your mortgage closes.
  • Homebuyer education may be required for some mortgage programs. Attend Home Stretch for in-person training, or Framework for online training.

Frequently Asked Questions

How much money can I save with an MCC?
Savings vary, depending on your loan amount and interest rate.

Example savings:

  • $175,000 loan amount at 4.375% interest
  • Estimated savings over the life of the loan = $44,000
Can an MCC benefit me if I don’t have a federal income tax liability?
No, the MCC reduces your federal income tax burden so if your tax liability is $0 the MCC will save you $0.
What is a federal tax income tax liability?
The actual amount that you owe the federal government, which they may collect from your tax withholdings from your paychecks or at tax time. Want to know what your tax liability was last year? Check your most recent tax return.
Form You Used
Line showing your tax liability
line 46
line 12
line 63
How long can I use the credit?
You can use the MCC for up to 30 years, or until you refinance, sell the home or move. You may have the MCC re-issued when you refinance if your new mortgage meets the program requirements.

Can I still take the mortgage interest deduction on my income taxes?
Yes, you can deduct the remaining 65% of the mortgage interest paid.

How much help can I get for my downpayment?
With a Minnesota Housing home mortgage you can get both an MCC and a Minnesota Housing Monthly Payment Loan with a maximum loan amount of 5% of the purchase price or $5,000 (whichever is greater), to cover downpayment/closing costs.