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MSHDA Mortgage Credit Certificate (MCC)

Michigan State Housing Development Authority (MSHDA) · Statewide County, Michigan

Last verified
See what you qualify forOfficial program site →
Assistance

$2,000

The maximum the program publishes — not an offer

Price cap

$566,355

Highest purchase price the program allows

Repayment

Tax credit

Not a loan, so there is nothing to repay

What is MSHDA Mortgage Credit Certificate (MCC)?

MSHDA Mortgage Credit Certificate (MCC) is a mortgage credit certificate for homebuyers in Statewide County, Michigan, administered by Michigan State Housing Development Authority (MSHDA).

  • The MSHDA Mortgage Credit Certificate (MCC) is a federal income tax credit issued in connection with the purchase of a home. Qualified homebuyers can credit 20% of the annual mortgage interest paid against their year-end federal tax liability as a dollar-for-dollar reduction in tax owed, for the life of the original mortgage (up to 30 years). It is available to first-time homebuyers statewide and to repeat homebuyers in targeted areas, and must be applied for and approved through an approved MCC lender before purchase.
  • Federal tax credit of 20% of annual mortgage interest paid.
  • Dollar-for-dollar reduction in federal income tax liability.
  • Credit available for the life of the original mortgage (up to 30 years).
  • Available to first-time homebuyers statewide and repeat homebuyers in targeted areas.
  • MSHDA reimburses any IRS recapture tax the seller pays.
  • This is a federal program, so it is available beyond a single state or city.

How much assistance does it provide?

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

  • Amounts are the program's published maximums, not an offer — Michigan State Housing Development Authority (MSHDA) determines any individual award.

Do you have to pay it back?

MSHDA 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?

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

The program requires

  • First-time homebuyer — with exceptions: First-time homebuyer requirement (no ownership interest in a principal residence in the preceding three years) is waived for buyers purchasing in federally designated targeted areas; repeat homebuyers are eligible in targeted areas.
  • The home is occupied as a primary residence
  • Residency: Must occupy the residence as principal residence within 60 days after closing.
  • DRAFT (dpa-gap-finder 2026-06-08): pending review. MCC must be applied for and approved through an approved MSHDA MCC lender PRIOR to purchasing the home; it is only available with a mortgage for a home purchase (not a refinance). The mortgage cannot pay off an existing mortgage or land contract (exceptions for certain construction-period/temporary loans). MCC is nonrefundable; the benefit cannot exceed federal taxes owed in a given year. All overtime income must be included in household income. Borrowers must meet the participating lender's credit/underwriting criteria. GAP NOTES (unconfirmed, omitted): min_credit_score and max_dti (set by participating lender, not published by MSHDA); income_limit_percent (limits are dollar-based per lower of state/federal); 4-person income_limit_amount (table uses 1-2 vs 3+ person brackets).

The program excludes

  • Purchases above the $566,355 price cap

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

MSHDA Mortgage Credit Certificate (MCC) sets its income limit as follows: Household income limits vary by county and by targeted vs. non-targeted area, with separate limits for 1-2 person and 3-or-more person households (effective 6.1.2026). The borrower must meet the lower of state and federal income limits, and all overtime income must be included. Non-targeted area examples (1-2 / 3+ persons): most counties $98,400 / $113,160; Kent (non-targeted) $106,600 / $122,590; Ottawa (non-targeted) $113,700 / $130,755; Livingston (non-targeted) $129,000 / $148,350. Targeted area examples (1-2 / 3+): baseline $118,080 / $137,760; Kalamazoo $129,720 / $151,340; Washtenaw $170,760 / $199,220. See the MSHDA Income & Sales Price Limits table (6.1.2026) for the full county-by-county breakdown.

  • 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?

MSHDA Mortgage Credit Certificate (MCC) caps the purchase price at $566,355.

  • Eligible property types include Single Family, Condo, and Manufactured.
  • New construction is eligible.
  • Manufactured homes are eligible.

Where does it apply?

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

  • The program gives priority to designated target areas, so the address matters as well as the county.

How do you apply?

Applications for MSHDA Mortgage Credit Certificate (MCC) go through Michigan State Housing Development Authority (MSHDA), which publishes the current terms and the application steps on its own site.

  1. Contact Michigan State Housing Development Authority (MSHDA) to reserve funds

    Funds are reserved through First-come, first-served basis; applications made through participating lenders. No allocation of MCCs by lender or by geographic area., and are subject to availability.

  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.

Learn this program

Short reads on how it works, in plain language. Free, no sign-up needed to read.

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MSHDA Mortgage Credit Certificate (MCC), explained

A short, free course on MSHDA Mortgage Credit Certificate (MCC): what a mortgage credit certificate is, who it is for, how you claim it, where it applies and how to apply. Based on program data from July 2026. About ten minutes.

5 modules · About 10 minutes

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