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CalHFA Mortgage Credit Certificate (MCC) Program

California

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See what you qualify forOfficial program site →
Assistance

20%

Of the purchase price, as the program sets it

Income limit

115% AMI

Of area median income; varies by county and household size

Price cap

$765,000

Highest purchase price the program allows

Repayment

Tax credit

Not a loan, so there is nothing to repay

What is CalHFA Mortgage Credit Certificate (MCC) Program?

CalHFA Mortgage Credit Certificate (MCC) Program is a mortgage credit certificate for homebuyers in California.

  • Federal income tax credit (not a DPA loan) of 20% of annual mortgage interest paid, up to $2,000/year, for the life of the loan. Reduces federal tax liability dollar-for-dollar. Must be first-time homebuyer and meet income/purchase-price limits.
  • Up to $2,000 in assistance.
  • non-repayable grant.
  • Funding comes from Federal tax credit (IRS).

How much assistance does it provide?

CalHFA Mortgage Credit Certificate (MCC) Program provides assistance worth 20% of the purchase price, as set by the program.

  • The program asks buyers to contribute 1% of purchase price (borrower minimum).
  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

CalHFA Mortgage Credit Certificate (MCC) Program is a tax credit rather than a loan, so there is nothing to repay.

  • Repayment is triggered by None and credit recaptured only if sold within 9 years and income increased significantly.
  • The assistance is recorded in N/A (grant - no lien) position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

CalHFA Mortgage Credit Certificate (MCC) Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • On credit: Minimum 660 FICO score required for all borrowers
  • A completed homebuyer education course
  • Residency: Primary residence
  • Citizenship or immigration status: U.S. citizen, permanent resident alien, or other eligible non-citizen
  • Federal tax credit; must use CalHFA-approved lender; annual tax credit of 20% of mortgage interest (max $2,000/yr); reduces federal income tax owed; recapture tax possible if sold within 9 years with income increase

The program excludes

  • Purchases above the $765,000 price cap
  • Households above 115% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

CalHFA Mortgage Credit Certificate (MCC) Program limits household income to 115% of the area median income, which varies by county and household size.

  • Contact program provider for current income limits.
  • The limit applies to total household income, not only the borrower’s.
  • The program lists a maximum household size of 8.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

CalHFA Mortgage Credit Certificate (MCC) Program caps the purchase price at $765,000.

  • Eligible property types include Single-family (1-4 unit), FHA-approved condominium, townhome/PUD.
  • New construction is eligible.
  • Manufactured homes are eligible.

Where does it apply?

CalHFA Mortgage Credit Certificate (MCC) Program serves buyers purchasing anywhere in California.

How do you apply?

Applications for CalHFA Mortgage Credit Certificate (MCC) Program go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program before funds are reserved.

  2. Contact the administering agency to reserve funds

    Funds are reserved through CalHFA Lender Portal (CLMS), and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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