Louisiana Housing Corporation Mortgage Credit Certificate (MCC) Program

What is Louisiana Housing Corporation Mortgage Credit Certificate (MCC) Program?

Louisiana Housing Corporation Mortgage Credit Certificate (MCC) Program is a mortgage credit certificate for homebuyers in Louisiana, administered by Louisiana Housing Corporation.

• The LHC Mortgage Credit Certificate (MCC) Program is a $5 million statewide program for first-time homebuyers, veterans, and low-to-moderate income buyers purchasing in designated areas. The MCC provides a federal income tax credit equal to up to 40% of annual mortgage interest paid, capped at $2,000 per year, for the life of the loan as long as the home remains the borrower's primary residence. It increases disposable income and can be layered with LHC down payment assistance.
• Federal tax credit of up to 40% of annual mortgage interest (max $2,000/yr).
• Credit available for the life of the loan while owner-occupied.
• Increases borrower's eligible loan amount.
• Can be combined with LHC down payment assistance.
• Available statewide.
• Master Servicer approval not required.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from Mortgage Credit Certificate authority (in lieu of mortgage revenue bond authority).

How much assistance does it provide?

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

• Amounts are the program's published maximums, not an offer — Louisiana Housing Corporation determines any individual award.

Do you have to pay it back?

Louisiana Housing Corporation Mortgage Credit Certificate (MCC) Program 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?

Louisiana Housing Corporation Mortgage Credit Certificate (MCC) Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Louisiana Housing Corporation Mortgage Credit Certificate (MCC) Program sets its income limit as follows: Household income limits depend on household size and property location; see LHC Exhibit U (Maximum Permissible Family Income Limits). Specific dollar limits not stated on the program page; confirm against current Exhibit U.

• 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?

Louisiana Housing Corporation Mortgage Credit Certificate (MCC) Program caps the purchase price as follows: Maximum permissible acquisition cost set by LHC Exhibit T; varies by area and targeted/non-targeted status.

• Eligible property types include Single Family.
• New construction is eligible.

Is there eligibility for specific groups?

Louisiana Housing Corporation Mortgage Credit Certificate (MCC) Program 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?

Louisiana Housing Corporation Mortgage Credit Certificate (MCC) Program is a federal program, so it is not limited to Louisiana.

• The program targets specific areas: MCC follows federal targeted-area provisions; targeted-area purchases receive relaxed first-time-buyer and income/purchase-price treatment.

How do you apply?

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

1. 1

   Contact Louisiana Housing Corporation to reserve funds

   Funds are reserved through Lender reserves the MCC for the borrower with LHC; lender completes processes from application through closing., 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.