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.

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.

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.

Mortgage Credit Certificate (MCC) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time requirement waived if purchasing in an IHCDA-designated Targeted Area or if the borrower is a Qualified Veteran. On credit, the program states: Minimum FICO set by IHCDA and/or the Master Servicer (U.S. Bank HFA). A homebuyer education course is required, through Fannie Mae HomeView and Freddie Mac CreditSmart. Residency requirement: Property must be in Indiana and the borrower's primary residence. Approx. $800 MCC fee; first-time buyer (or Targeted Area / veteran exception); homebuyer education required; income and acquisition limits apply by county.

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.

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.

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.

Mortgage Credit Certificate (MCC) serves homebuyers purchasing anywhere in Indiana. The program targets specific areas: IHCDA Targeted Areas (qualified census tracts and statutorily targeted counties) waive the first-time buyer requirement.

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. Funds are reserved through IHCDA Authority Online reservation portal (via participating lenders). 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.