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. Funding comes from Authorized in lieu of qualified mortgage (private activity) bonds under IRC Section 25.

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.

Mortgage Credit Certificate (MCC) Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Three-year no-prior-ownership rule is waived if the residence is located in a designated Target Area. 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.

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

Mortgage Credit Certificate (MCC) Program serves homebuyers purchasing anywhere in 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.

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. 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.