The Mortgage Credit Certificate (MCC) is available at the time of purchase to qualifying applicants. The certificate allows you to claim the mortgage credit every single year that you have the mortgage and occupy the home as a primary residence. In Maryland it is called the Maryland Homecredit Program (MHCP), but everyone knows this program more commonly as the MCC.
The available tax credit each year in Maryland is equal to 25% of the mortgage interest paid for that year up to a maximum of $2,000. In Washington, D.C. and Virginia, the limit is 20%, however, neither state currently have a cap on the total amount of the credit allowed.
To qualify for an MCC, you must be purchasing a home in Maryland, Washington, D.C., or Virginia and meet the following criteria:
- You must meet the same income limits and home purchase price limits as the Maryland Mortgage Program (MD properties); DC Open Doors (DC properties) or VHDA (Virginia properties).
- You cannot have owned a home during the past three years, unless you are purchasing in a Targeted Area.
- The home you purchase must be your primary residence.
To determine the overall saving in Maryland, use this MCC spreadsheet at the bottom of the page.
To determine the overall savings in Virginia or Washington, D.C., you can use the MCC calculator.
Fees for the MCC can range from $800-$2225 upfront (paid at settlement) depending on location of the home and if it is being applied for in addition to one of the three state home loan programs mentioned above. If it is being applied for without being paired with a state program, the upfront fees are higher.
The upfront cost pays for itself the first full year of claimed mortgage interest. This program is only available at the time of purchase. It cannot be added after buying a home.