The Michigan State Housing Development Authority (MSHDA) Mortgage Credit Certificate (MCC) is a federal tax credit issued in

connection with the purchase of a home. It allows homebuyers to credit 20% of the annual mortgage interest paid against their

year-end federal income tax liability. The maximum credit is $2,000 per year.

Federal tax credit of up to 20% of the annual mortgage interest paid on your mortgage

• MCC tax credit is available for the life of the original mortgage (up to 30 years)

• Tax credit may allow borrower more income to qualify for the mortgage or to make the monthly payment

• Homebuyer must contact a MSHDA approved MCC lender to apply and qualify for the MCC tax credit

(a complete list of lenders is located at Michigan.gov/Homeownership)

• Fee for MCC program is $400 (the lender may charge an additional $100 administration fee)

• IRS recapture tax may apply if borrower sells the home within the first nine years after purchase

(MSHDA Recapture Tax Reimbursement program is available)

• Borrower may keep the original MCC tax credit if the loan is modified (rate and/or term only)

and the modification does not change the principal balance of the loan

• The MCC program cannot be combined with a MSHDA MI Home Loan or

land contracts, refinances and rehab loans (i.e. FHA 203K)

Contact a MSHDA MCC participating lender

Michigan.gov/Homeownership