PROGRAM NOTICE

The Mortgage Credit Certificate program has been suspended as of 06/17/2020. For requests on Mortgage Credit Certificates that have already been issued, please visit this page for information and instructions.

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INTRO TO MORTGAGE CREDIT CERTIFICATES

What is an MCC, and how can it benefit my borrower?

ELIGIBILITY AND PROGRAM REQUIREMENTS

Details on who can apply and with which programs the MCC can be used.

MCC

FAQs

MCC specific frequently asked questions.

FORM

IRS-8396

This IRS form is designated for holders of qualified mortgage credit certificates Issued by state or local governmental units or agencies. IHDA cannot give tax advice; borrowers should contact their tax professional for tax advice on filling with their Mortgage Credit Certificate.

MCC

DOCUMENT SET

Contains all documents required for the MCC Program. 

MCC

REISSUANCE

Homeowners that already have a MCC may request an reissuance after refinancing. Click here for instructions and guidelines.

FORM

IRS-8329

Lenders must file an annual report with the IRS using form 8329. IHDA sends a cumulative a year-end MCC report to help lenders complete this form.

 
 

Program Guidelines

The MCC entitles the borrower to take a federal income tax credit. The tax credit is in the amount of 25% of their paid mortgage interest. The MCC is registered with the IRS, and is effective year after year (up to 30 years), as long as the homeowner resides in the home and continues to pay mortgage interest on the initial loan. In some cases the borrower can apply for a re-issuance of the MCC in the event of a refinance, to continue to take advantage of the MCC tax credit.

Eligibility

  • Available only in conjunction with the IHDA Access Programs.

  • Borrowers must be first-time homebuyers (or Exempt*).

  • Borrower must be below county MCC income limits. (The income limits on a loan taking a MCC are more restrictive than our general limits and are based on the number in the household.)

  • Borrower must be below county MCC purchase price limits.

  • Property must be a qualified dwelling situated on less than 5 acres of land.

  • (*Exempt = a qualified veteran (borrower must be a veteran), or property is in a targeted area. Note that if only the spouse is a veteran, the spouse must also be a borrower/mortgagor and obligated on the Note.)

  • $350.00 - Payable to Illinois Housing Development Authority

  • $150.00 - Optional fee that may be charged by the originating lender
    (Both fees must appear on the CD for the 1st Mortgage)

Fees