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Mortgage Credit Certificate

The Industrial Development Authority of the County of Pima (IDA) offers a Mortgage Credit Certificate (MCC) Program to help homebuyers finance their home purchase.  Community Investment Corporation (CIC) is the program administrator for the MCC and determines participant eligibility, issues certificates for qualified applicants, and manages all administrative aspects of the program.

What is a Mortgage Credit Certificate?

A MCC is a tax credit that reduces your federal tax liability.  You receive a tax credit for 40% (up to a maximum $2,000) of your annual mortgage interest payment each year for as long as you own and remain in the home purchased.

Example: 

 

$125,000 Loan Amount
X 4% Interest
= $5,000 Interest the first year
X 40% MCC Credit

= $2,000 Tax Credit! 

Program Eligibility

  • Applicant must be a first-time homebuyer if the MCC is being used to finance the purchase of a home (except if the home falls within a target area)
    • A person is considered a first-time homebuyer if they have NOT owned a home within the past three years.
  • Application must be submitted prior to closing on your home purchase.
  • Applicant must intend to occupy the property being purchased.
  • MCC’s cannot be used in conjunction with any mortgage revenue bond programs or with any veteran bond loans.
  • Eligible properties include new or previously occupied single-family homes including detached homes, manufactured housing, condominiums, duplexes or townhouses.
  • See the following charts for income and purchase price limits.

Household Income Limit

Family Size Non-Target Area Target Area*
1 to 2 persons  $61,600  $73,920
3 or more persons $70,840  $86,240

Purchase Price Limits

Property Type Non-Target Area Target Area*
New or Existing $253,809 $310,211

 

*Target Areas for the MCC program are determined by the US Census Bureau.  Please contact Patty Gonzalez at (520) 529-1766 x205 or patty@cictucson.com for a list of target areas.

Program Area

CIC administers the MCC program for rural Pima County and the cities of South Tucson, Marana, Oro Valley, and Sahuarita. If you are purchasing a home in the Tucson city limits, please call Advantage Housing Solutions at (520) 882-5591.

What does it cost to participate in the MCC Program?

There is a $1,000 one-time certificate issuance fee due at the time of your home purchase. This fee covers the cost of enrolling in the program and the issuance of your certificate.  Fees can be paid directly to CIC or through your title company at the time closing.

Starting the second year you are in the home and every year thereafter while the loan is active (max 30 years), there is an annual $150 administration fee. This fee covers the costs of your annual certificate renewal and any additional reporting required.

How to apply

Application into the program is typically requested by your lender; however, you may also apply directly with CIC. A copy of the loan application (1003), the purchase contact, and the last three years of Federal Tax returns must be faxed to Patty Gonzalez at (520) 257-2647. Upon receipt of your documents, CIC will contact you to set up an appointment to meet and process the application.

Questions

For more information on the MCC Program or if you have any questions, please contact Patty Gonzalez at (520) 529-1766 x205 or patty@cictucson.com.