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.
IHDA Mortgage MCC
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.
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)