Michigan Mortgage Credit Certificate (MCC) Program

Could You Qualify for a Federal Homebuyer Tax Credit?

Michigan's Mortgage Credit Certificate (MCC) Program may allow eligible homebuyers to claim a federal income tax credit based on a portion of qualified mortgage interest paid each year. The program is administered by the Michigan State Housing Development Authority (MSHDA). The MCC must be applied for and approved through an approved MCC lender before the home is purchased.

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Federal Tax Credit

A dollar-for-dollar federal tax credit on mortgage interest

Under Michigan's current program, qualified homebuyers may claim a federal tax credit equal to 20% of eligible annual mortgage interest, subject to the certificate, federal tax rules, federal income tax liability, and continued qualification. The actual benefit varies by taxpayer.

20%

Of eligible annual interest

MSHDA

Program administrator

Understanding the Program

What is an MCC?

An MCC is not a loan, grant, or cash payment. Under Michigan's current program, qualified homebuyers may claim a federal tax credit equal to 20% of eligible annual mortgage interest, subject to the certificate, federal tax rules, federal income tax liability, and continued qualification. The actual benefit varies by taxpayer.

Because a tax credit reduces your federal tax liability directly (rather than just reducing taxable income like a deduction), eligible homeowners can see meaningful annual savings for the life of the mortgage — as long as they continue to qualify and maintain the certificate requirements.

•Read the full MCC program guide

Qualification Overview

Common Eligibility Factors

Eligibility is never guaranteed and depends on the details of your purchase and household. These are the factors MSHDA-approved lenders typically review.

Approved Participating Lender

Purchase financing must be originated through an approved participating MCC lender such as Citizens State Bank.

First-Time Homebuyer Status

Generally required, except qualifying repeat buyers purchasing in designated targeted areas.

Household Income Limits

Limits are based on household size and the location of the property being purchased.

Acquisition-Cost / Sales-Price Limit

There is a current acquisition-cost or sales-price limit that applies to the purchase.

Principal-Residence Occupancy

The home must be occupied as your principal residence.

Approval Before Purchase

Program availability and MCC approval must be secured before the home is purchased.

Important: Program rules, income limits, and purchase-price limits are set by MSHDA and may change. Eligibility is determined at the time of application through an approved lender. This page is for general education and is not tax advice or a guarantee of approval.

MCC Questions Answered

Frequently Asked Questions

What is the Michigan Mortgage Credit Certificate (MCC)?

An MCC is not a loan, grant, or cash payment. Under Michigan's current program, qualified homebuyers may claim a federal tax credit equal to 20% of eligible annual mortgage interest, subject to the certificate, federal tax rules, federal income tax liability, and continued qualification. The actual benefit varies by taxpayer.

Who administers the MCC program in Michigan?

The Mortgage Credit Certificate program is administered by the Michigan State Housing Development Authority (MSHDA). The MCC must be applied for and approved through an approved MCC lender before the home is purchased.

How does an MCC tax credit differ from a mortgage interest deduction?

A tax deduction reduces your taxable income, while a tax credit reduces your actual federal tax bill dollar-for-dollar. With an MCC, a portion of your mortgage interest becomes a direct federal tax credit rather than just a deduction, which can result in a larger annual tax benefit for eligible homeowners.

Do I have to be a first-time homebuyer to use the MCC?

First-time homebuyer status is generally required, except that qualifying repeat buyers purchasing in designated targeted areas may also be eligible. 'First-time' typically means not having owned a primary residence in the past three years.

Can the MCC be combined with down payment assistance?

Eligible borrowers may be able to combine the MCC with other programs such as Michigan down payment assistance (DPA), depending on program rules, income limits, and loan type. Ramzi can help review which programs stack for your scenario.

When do I need to apply for an MCC?

The MCC must be applied for and approved through an approved MCC lender before the home is purchased. It cannot be added after closing, so it's important to request an eligibility review early in your homebuying process.

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