Mortgage Credit Certificate

Mortgage Credit Certificate
Tax Credit Program
40% Tax Credit

A Mortgage Credit Certificate (MCC) is a tax credit that reduces your federal income tax liability, if you have one. Your tax liability is the amount the IRS taxes you for your earnings, not the amount that you pay or are refunded. Each year, the tax credit equals 40% of your annual mortgage interest paid. You continue to receive a tax credit for as long as you have a mortgage on your home, even if you refinance. Your lender may be able to use the amount you will receive from the tax credit as part of your income, for loan qualification purposes.

EXAMPLE: How it works

x               4%
x             40%
Loan amount
Interest rate
Interest paid 1st year
MCC Credit rate
Tax Credit


Household Income Limit
Pima County Non-Target Target
1 to 2 persons $59,800 $71,760
3 or more persons $68,770 $83,720
Purchase Price Limits
Pima County Non-Target Target
New or Existing $255,573 $312,368

Mortgage Credit Certificate Rate: 40%

Fee Schedule – Applicant
Program fee $1,000.00
Annual Administration fee $150.00

Program Area
FHR administers the MCC program for Rural Pima County and the cities of South Tucson, Marana, Oro Valley, and Sahuarita.

If purchasing a home in the City of Tucson limits call Advantage Housing at 882-5591.

Eligible Properties
New or previously occupied single-family homes including detached homes, manufactured housing, condominiums, duplexes, or townhouses within the
Program Area.

Eligible Lenders
Any lending institution located within the state is eligible to provide loans under this program. There are no fees to be paid by the lender.

Eligible Loans
Fixed-rate or adjustable rate FHA, VA, and Conventional loans. MCC’s are not available with nontaxable mortgage revenue bond loans and veteran
bond loans. Only original first mortgage financing is eligible. MCC’s cannot be used with 100% seller financing.

Other Program Requirements
The MCC recipient must plan to occupy the property purchased. Applicant must be a first-time homebuyer, unless property is in a targeted area. Prior ownership
of a home (including an affixed mobile home) within the three most recent years disqualifies the Applicant as a first-time homebuyer.

How to apply
Come to FHR so we can review your tax returns and help you determine if an MCC will work for you. Lenders are to fax a 1003 form to Family Housing
Resources at 520-323-3788.

Se habla español.

Family Housing Resources
1700 E. Ft Lowell Rd, Suite 101
Tucson, AZ 85719 520-318-0993