WHEDA Tax Advantage (Mortgage Credit Certificate / MCC)

What is WHEDA Tax Advantage (Mortgage Credit Certificate / MCC)?

WHEDA Tax Advantage (Mortgage Credit Certificate / MCC) is a mortgage credit certificate for homebuyers in Wisconsin, administered by Wisconsin Housing and Economic Development Authority (WHEDA).

• A Mortgage Credit Certificate giving first-time buyers a federal income-tax credit of 25% of annual mortgage interest (40% for veterans / target areas), up to $2,000/yr for the life of the loan.
• Annual federal tax credit 25% of mortgage interest (40% veterans & target areas).
• Up to $2,000/yr.
• Life of loan.
• Funding comes from Federal.

How much assistance does it provide?

WHEDA Tax Advantage (Mortgage Credit Certificate / MCC) offers up to $2,000 in assistance.

• The program can be combined with WHEDA Advantage or non-WHEDA first mortgages and WHEDA DPA.
• Amounts are the program's published maximums, not an offer — Wisconsin Housing and Economic Development Authority (WHEDA) determines any individual award.

Do you have to pay it back?

WHEDA Tax Advantage (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?

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

What are the income limits?

WHEDA Tax Advantage (Mortgage Credit Certificate / MCC) sets its income limit as follows: WHEDA MCC income limits (non-target 1-2 person $104,800-$132,400 eff 5/18/2025); higher in target areas.

• 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?

WHEDA Tax Advantage (Mortgage Credit Certificate / MCC) caps the purchase price at $544,232.

• Eligible property types include Single Family, Condo, 2-4 Unit, and Manufactured.
• New construction is not eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

WHEDA Tax Advantage (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.

Where does it apply?

WHEDA Tax Advantage (Mortgage Credit Certificate / MCC) serves buyers purchasing anywhere in Wisconsin.

How do you apply?

Applications for WHEDA Tax Advantage (Mortgage Credit Certificate / MCC) go through Wisconsin Housing and Economic Development Authority (WHEDA), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved agency, WHEDA-approved PMI provider, eHomeAmerica, or Framework.

2. 2

   Contact Wisconsin Housing and Economic Development Authority (WHEDA) to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   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.