Mortgage Credit Certificate Program – Alabama

The MCC Program allows homebuyers to claim a portion of their annual mortgage interest as a tax credit on their federal tax return. This may support increased disposable income and is administered by AHFA. Buyers may combine MCC with Step Up and other down payment programs to maximize their benefits.

How MCC Helps:

• The MCC benefit can be claimed every year as long as you live in the home and keep the mortgage.

• The tax credit does not prevent you from also claiming the mortgage interest deduction.

• You can combine MCC with other local and national down payment programs for maximum benefit.

• Must be a first-time homebuyer or not have owned a home in the past three years

• Must meet income and purchase price limits

• Must use the home as a primary residence

• Must apply through a participating lender

• Federal tax credit up to $2,000 per year

• Can be combined with Step Up Program

• Increases buyer’s net income

1. Confirm eligibility requirements

2. Apply through a participating lender

3. Complete necessary documentation

4. Receive the MCC at loan closing

5. Claim the credit on federal tax returns