Idaho Housing Homebuyer Tax Credit (Mortgage Credit Certificate / MCC)

What is Idaho Housing Homebuyer Tax Credit (Mortgage Credit Certificate / MCC)?

Idaho Housing Homebuyer Tax Credit (Mortgage Credit Certificate / MCC) is a mortgage credit certificate for homebuyers in Statewide, Idaho, administered by Idaho Housing and Finance Association (IHFA).

• IHFA's Mortgage Credit Certificate lets eligible Idaho homebuyers claim a federal income tax credit equal to 35% of the mortgage interest paid each year, capped at $2,000 annually, for as long as they live in the home and pay interest on the mortgage. It is a non-refundable credit, with unused amounts carried forward up to three years. The MCC cannot be used with IHFA's First Loan product but can pair with IHFA down payment assistance and standard loan types.
• Up to $2,000/year federal tax credit.
• 35% of annual mortgage interest.
• Stackable with most DPA.
• Lasts the life of the loan.
• Carry-forward of unused credit up to 3 years.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from Federal (mortgage revenue bond authority converted to MCC authority under IRS rules).

How much assistance does it provide?

Idaho Housing Homebuyer Tax Credit (Mortgage Credit Certificate / MCC) offers up to $2,000 in assistance.

• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — Idaho Housing and Finance Association (IHFA) determines any individual award.

Do you have to pay it back?

Idaho Housing Homebuyer Tax Credit (Mortgage Credit Certificate / MCC) is a tax credit rather than a loan, so there is nothing to repay.

• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Idaho Housing Homebuyer Tax Credit (Mortgage Credit Certificate / MCC) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Idaho Housing Homebuyer Tax Credit (Mortgage Credit Certificate / MCC) sets its income limit as follows: IHFA First Loan program household income limits apply; vary by county and household size (updated annually).

• 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?

Idaho Housing Homebuyer Tax Credit (Mortgage Credit Certificate / MCC) caps the purchase price as follows: IHFA First Loan program sales price limits apply; vary by county.

Where does it apply?

Idaho Housing Homebuyer Tax Credit (Mortgage Credit Certificate / MCC) is a federal program, so it is not limited to Idaho.

• The program targets specific areas: IHFA-designated targeted counties/areas waive the first-time-buyer requirement and may relax income/price limits.

How do you apply?

Applications for Idaho Housing Homebuyer Tax Credit (Mortgage Credit Certificate / MCC) go through Idaho Housing and Finance Association (IHFA), which publishes the current terms and the application steps on its own site.

1. 1

   Contact Idaho Housing and Finance Association (IHFA) to reserve funds

   Funds are reserved with the provider and are subject to availability.

2. 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.