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.

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.

Mortgage Credit Certificate (MCC) Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: 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. On credit, the program states: 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.

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.

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.

Mortgage Credit Certificate (MCC) Program serves homebuyers 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.

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. Funds are reserved through MCC Conditional Commitment issued through a participating lender at mortgage application. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.