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Mortgage Credit Certificate (MCC) Program

Mississippi Home Corporation · Mississippi

Last verified
See what you qualify forOfficial program site →
Price cap

$332,000

Highest purchase price the program allows

Repayment

Tax credit

Not a loan, so there is nothing to repay

What is Mortgage Credit Certificate (MCC) Program?

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

  • MHC's Mortgage Credit Certificate (MCC) Program, authorized under Section 25 of the Internal Revenue Code, entitles qualifying first-time homebuyers to a federal income tax credit equal to a fixed percentage of the mortgage interest paid each year on their principal residence. MHC began accepting MCC applications on March 21, 2024.
  • Annual federal income tax credit calculated as a percentage of mortgage interest paid; dollar-for-dollar reduction of federal tax liability for the life of the original mortgage while the home remains the primary residence.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from Authorized in lieu of qualified mortgage (private activity) bonds under IRC Section 25.

Do you have to pay it back?

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?

Mortgage Credit Certificate (MCC) Program 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: Three-year no-prior-ownership rule is waived if the residence is located in a designated Target Area.
  • The home is occupied as a primary residence
  • MCC cannot be issued in conjunction with the assumption, replacement, or refinancing of an existing mortgage (may replace construction/bridge financing of 24 months or less). Certificate holder must use the residence as principal residence within 60 days. A manufactured home qualifies only if it has at least 400 sq ft of living space, minimum width over 102 inches, and a fixed location. Reserved through a participating lender prior to closing. UNCONFIRMED: per the MCC Manual, the credit rate has been cited at 40% and income limits at roughly $71,800-$119,420 by county/family size (Dec 2023 legal notice) - verify current figures with MHC before relying on them.

The program excludes

  • Purchases above the $332,000 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 kind of home can it be used for?

Mortgage Credit Certificate (MCC) Program caps the purchase price at $332,000.

  • Manufactured homes are eligible.

Where does it apply?

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

  • The program targets specific areas: Target Areas are specified counties or portions of counties designated by the federal government; the first-time homebuyer requirement is waived in these areas.

How do you apply?

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

  1. Contact Mississippi Home Corporation to reserve funds

    Funds are reserved with the provider 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.

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