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Mortgage Credit Certificate (MCC) Program

Hawaii Housing Finance & Development Corporation (HHFDC) · Hawaii

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See what you qualify forOfficial program site →
Assistance

20%

Of the purchase price, as the program sets it

Income limit

$161,697

The household income limit the program publishes

Price cap

$785,429

Highest purchase price the program allows

Repayment

Tax credit

Not a loan, so there is nothing to repay

What is Mortgage Credit Certificate (MCC) Program?

Mortgage Credit Certificate (MCC) Program is a mortgage credit certificate for homebuyers in Hawaii, administered by Hawaii Housing Finance & Development Corporation (HHFDC).

  • The Mortgage Credit Certificate (MCC) Program provides eligible first-time homebuyers a non-refundable federal income tax credit equal to 20% of the annual mortgage interest paid, with the remaining 80% still deductible as an itemized deduction. The credit is a dollar-for-dollar reduction of federal tax liability and lasts the life of the loan as long as the home remains the principal residence; unused credit can be carried forward up to three years.
  • 20% of annual mortgage interest as a direct federal tax credit.
  • Remaining 80% still deductible.
  • Increases mortgage qualifying income.
  • Effective payment reduction.
  • Credit lasts life of loan.
  • Unused credit carries forward up to 3 years.
  • Funding comes from Federal mortgage credit certificate authority (converted from private-activity bond volume cap); MCC allocation calculated as 20% of indebtedness.

How much assistance does it provide?

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

  • Amounts are the program's published maximums, not an offer — Hawaii Housing Finance & Development Corporation (HHFDC) determines any individual award.

Do you have to pay it back?

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

  • Repayment is triggered by Credit is automatically revoked if the home ceases to be the holder's principal residence; certificate must be returned on sale.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

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 — with exceptions: May not have had an ownership interest in a principal residence in the prior 3 years; this requirement does not apply to homes in targeted areas.
  • The home is occupied as a primary residence
  • On credit: Set by the participating mortgage lender; not established by the MCC program.
  • MCC cannot be combined with Hula Mae / qualified mortgage bond loans. Buyer files a revised W-4 to capture the benefit through reduced withholding. STATUS CAVEAT: the program brochure and the on-site 'funds available' counter were last updated in 2024 (uncommitted funds $670,211 / estimated available $379,811 as of 4/15/2024); the HHFDC homebuyer page still lists MCC as a current program with an active participating-lender list, but applicants should confirm current MCC funding availability with a participating lender before relying on it.

The program excludes

  • Purchases above the $785,429 price cap
  • Households above $161,697

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?

Mortgage Credit Certificate (MCC) Program limits household income to $161,697.

  • The limit applies to total household income, not only the borrower’s.
  • 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?

Mortgage Credit Certificate (MCC) Program caps the purchase price at $785,429.

  • Eligible property types include Single Family, Condo, and Townhouse.
  • New construction is eligible.

Where does it apply?

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

  • The program targets specific areas: Targeted-area census tracts waive the first-time-homebuyer (3-year) requirement and carry higher income and purchase price limits; see a participating lender for the list.

How do you apply?

Applications for Mortgage Credit Certificate (MCC) Program go through Hawaii Housing Finance & Development Corporation (HHFDC), which publishes the current terms and the application steps on its own site.

  1. Contact Hawaii Housing Finance & Development Corporation (HHFDC) to reserve funds

    Funds are reserved through MCC Conditional Commitment issued through a participating lender at mortgage application., and are subject to availability.

  2. 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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