Mortgage Credit Certificate (MMC) – 20% tax credit

Eligible borrowers can receive a 20% tax credit on the amount of annual interest paid on their home mortgage. Benefits of the MCC are:

  • good for the life of the loan.
  • remaining 80% of annual interest paid can still be used for tax deduction.
  • can be used to reduce borrower’s debt to income ratio.
  • unused tax credits may be rolled forward for up to three years.
  • can be transferred to subsequent refinance transactions for the subject property.
  • tax credit limited to $2,000 per year.
  • generally, borrowers are required to be first-time homebuyers.
  • subject to income and property acquisition cost limits.
  • property must be owner occupied.
  • subject to state or local MCC fees.

It is recommended that the borrower work with a CPA or Tax Planner to properly adjust their tax withholdings.

Michelle Castle provides mortgage loans to all of North Texas and Southern Oklahoma. Call Michelle Castle at (903) 892-1998 if you are looking for a home loan in North Texas and Southern Oklahoma.

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