The MCC (Mortgage Credit Certificate) is a program for homeowners provided by the City of Tucson’s Industrial Development Authority. The MCC is a tax credit that helps lower homeowner’s federal tax liability. The MCC gives homeowners a 20% credit off the interest they paid on their mortgage each year for as long as they own and live in the home. The MCC is for properties that are new or previously occupied single-family homes in the Program area. Homeowners must apply for the MCC before closing on the purchase of their home.

This program works with fixed rate or adjustable rate FHA,VA and Conventional loans. The MCC is not available with non-taxable mortgage revenue bond loans and veteran bond loans. Only original first mortgage financing is eligible. MCC’s cannot be used with 100% seller financing.

Household Income Limits         Non-Targeted Area         Targeted Area

1-2 person households*                 $69,000                     $72,480

3 or more persons households*        $79,675                     $79,675

Purchase Price Limits             Non-Targeted Area         Targeted Area

1 Unit                                         $276,334                     $337,741

2 Unit                                         $353,752                     $432,363

Applicant Fee’s

There is a .75% fee of the final loan amount to participate in the MCC. This can be added to the closing cost the seller pays. There is also a $100 Annual Administration fee. The $100.00 annual fee is paid each year by the borrower. The fee is paid in arrears, so the fee for 2009 is due in 2010 (we send an invoice in January). The fee is prorated the first year depending on when their closing date is.

Other Benefits

Once a borrower is in the MCC program they can refinance as many times as they wish and continue in the program provided they notify us each time they refinance so we can re-issue the certificate. They will need to complete a refinance application but there is NO ADDITIONAL FEE to do this. Also, since they are already in the program, they do not have to re-qualify (so no problem if their income exceeds program limits).

If a home owner uses the MCC they can save thousands of dollars. In this example the homeowner’s loan was $100,000. At 6% interest they will pay about $6,000 in interest. The MCC gives them credit for 20% of the interest paid. The tax credit would be $1200 the very first year. For this same mortgage over 30 years, the homeowner would receive $43,167 in tax credits from the MCC!!!!

Map of Non-Targeted Areas and Targeted Areas for Tucson City Limits

Contact me today to get more information and to apply.

*Household size is determined by how many individuals are living in the home (no age limits). If a borrower is expecting at time of application, the baby is counted toward the household size.