Pat Cray

Broward County Mortgage Tax Credit Certificate Program

The Mortgage Credit Certificate (MCC) program entitles qualified applicants to a Federal Income Tax Credit in an amount of up to $2,000 annually. This enables qualified owners or buyers, who owe federal income taxes, to benefit from a dollar-for-dollar reduction of their tax bills. Additionally the homeowner will continue to receive the tax credit each year they continue to live in the home financed under the program.

What does the MCC do?

The MCC reduces the amount of federal income tax paid giving more available income to qualify for a mortgage loan and assist with house payments. The MCC allows 10-50 percent (currently at 50 percent and subject to adjustment) of the mortgage interest paid each year to be used as a “tax credit.” As a Mortgage Credit Certificate holder, you will receive a direct dollar-for-dollar Federal Income Tax reduction. Depending on your circumstances, you may enjoy a savings through increased monthly take home pay or as a year-end tax refund. The MCC may help you qualify for larger home or assist you in qualifying for a mortgage loan when you otherwise would not.

Is the MCC a mortgage?

No, the MCC is not a mortgage, but may be used in conjunction with a first mortgage from a participating lender. Borrowers must qualify using standard credit requirements.

What is the difference between a tax credit and tax deduction?

A mortgage interest deduction differs from a mortgage tax credit. A “tax credit” entitles taxpayers to subtract the amount of the credit from their total federal income tax liability, receiving a dollar for dollar savings.

A “tax deduction” is subtracted from the adjusted gross income before federal income taxes are computed. Therefore, with a deduction, only a percentage of the amount deducted is realized in savings.

MCC Example:

Mortgage Amount: $121,000
Mortgage Term: 30 Years
Interest Rate: 6%
Total Interest Paid First Year: $7,220
MCC Rate: x 50%
Tax Credit: $2,000 (max. tax credit)

How much of a tax credit can be issued under the MCC?

The maximum amount of the tax credit shall not exceed $2,000 per year.

How do I qualify?

Borrowers must be first-time homebuyers who have not owned their principal residence during the last three years.* Borrower must meet normal mortgage underwriting requirements which demonstrate credit worthiness. There are income and home purchase price requirements in this program.

*This requirement is waived for homes purchased within a targeted area or by a qualified veteran.

What is a targeted area?

Census tract in which seventy percent (70%) or more of the families have an income which is eighty percent (80%) or less of the statewide median family income.

Are there additional costs?

Yes, there is an MCC application fee of $175.00. The fee is paid at closing and subject to change.

Income and Home Purchase Price Limits

Borrowers household income may not exceed the following:

1-2 Family members $75,456
3+ Family members $86,774

1-2 Family members $82,920
3+ Family members $96,740

The New or existing home purchase price may not exceed $337,500 for Non-Targeted and $412,500 for Targeted.

Where can I buy and what type of home can I purchase?

A new or existing single family home (attached or detached), condo, townhome, certain manufactured homes and Plan Unit Development must be within Broward County.

What happens when I move?

If you move in the first full nine years you own the home, make a profit on the sale, and have income that exceeds the allowable income at the time of the sale, you may be subject to recapture.

What’s the Next Step?

Contact Pat Cray at 954-682-0082 to pre-qualify for a mortgage loan and determine if an MCC benefits you.

I already own a home. Can I qualify?

Current homeowners with a mortgage loan originally financed through an Adjustable Rate Mortgage (ARM) and made after December 31st, 2001, but before January 1st, 2008, may qualify for the MCC Program.
Also, discharged veterans may qualify for the Mortgage Credit Certificate program even though they’ve owned a home previously.

For more information, contact

Pat Cray at 954-682-0082

or email Pat at