Mortgage Credit Certificate (MCC)

What is Mortgage Credit Certificate (MCC)?

Mortgage Credit Certificate (MCC) is a mortgage credit certificate for homebuyers in Indiana, administered by Indiana Housing & Community Development Authority (IHCDA).

• The IHCDA Mortgage Credit Certificate gives qualifying Indiana homebuyers a federal income-tax credit equal to 25% of the mortgage interest they pay each year, up to $2,000 annually for the life of the loan. It is a dollar-for-dollar credit against federal tax liability and can be paired with an IHCDA Next Home DPA loan. It is generally limited to first-time buyers unless purchasing in a Targeted Area or qualifying as a veteran, and income/acquisition limits apply by county.
• Up to $2,000/year federal tax credit.
• Credit lasts the life of the loan.
• Can be combined with Next Home DPA.
• Increases qualifying income.
• Works with FHA, VA, USDA, and conventional loans.
• This is a federal program, so it is available beyond a single state or city.

How much assistance does it provide?

Mortgage Credit Certificate (MCC) offers up to $2,000 in assistance.

• Award tiers: Credit equals 25% of annual mortgage interest paid, capped at $2,000/year, for the life of the loan.
• The program can be combined with IHCDA Next Home DPA; participating-lender first mortgages.
• Amounts are the program's published maximums, not an offer — Indiana Housing & Community Development Authority (IHCDA) determines any individual award.

Do you have to pay it back?

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

• Repayment is triggered by MCC is a federal tax credit, not a repayable loan; federal recapture tax may apply if a bond-financed home is sold within 9 years with income over limits and a gain realized.
• 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) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Mortgage Credit Certificate (MCC) sets its income limit as follows: County- and household-size-based income limits per IHCDA Income and Acquisition Limits tables (separate Targeted vs Non-Targeted limits).

• 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) caps the purchase price as follows: Acquisition-cost limits apply by county and Targeted/Non-Targeted designation per IHCDA tables.

• Eligible property types include Single-family, Condominium, and Eligible 1-unit primary residence.
• New construction is eligible.

Is there eligibility for specific groups?

Mortgage Credit Certificate (MCC) names veterans among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Mortgage Credit Certificate (MCC) is a federal program, so it is not limited to Indiana.

• The program targets specific areas: IHCDA Targeted Areas (qualified census tracts and statutorily targeted counties) waive the first-time buyer requirement.

How do you apply?

Applications for Mortgage Credit Certificate (MCC) go through Indiana Housing & Community Development Authority (IHCDA), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Fannie Mae HomeView and Freddie Mac CreditSmart..

2. 2

   Contact Indiana Housing & Community Development Authority (IHCDA) to reserve funds

   Funds are reserved through IHCDA Authority Online reservation portal (via participating lenders), and are subject to availability.

3. 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.