Mortgage Credit Certificate 



VHDA Mortgage Credit Certificate

The Virginia Housing Development Authority (VHDA) offers a Mortgage Credit Certificate program that allows

  • eligible borrowers 
  • to claim a tax credit 
  • for part of the mortgage interest they pay. 

An MCC is a dollar-for-dollar credit against the federal income tax they pay. The link to the VHDA video above explains this benefit. Please do not hesitate to call with any questions. 

The credit is equal to 20 percent of the mortgage interest paid. In addition, the other 80 percent of mortgage interest paid is still eligible for a tax deduction. The MCC is effective for the life of the mortgage as long as the buyers live in the home.

To be eligible, you must:

  • Be a first-time home buyer that has not have owned a home as a primary residence within the past three years (If you owned a home that was not your primary home for the past three years, you may qualify as a first time buyer). 
  • Have income at or below the maximum limit in Northern Virginia. This amount changes each year, so you can call or check with your lender for this number. 
  • Do not exceed the maximum home price. 
  • Live in the home as a primary residence.

If you sell your residence in the first nine years of homeownership, you could be subject to a federal recapture tax. There is a list of ways you are not subject to this recapture tax, so be sure to consult a tax preparer that is familiar with MCC. 

You can apply for an MCC through an approved participating lender on the VHDA. For more information, call to attend a class already scheduled or we will try to schedule one fit your schedule - that depends on how much notice we have. You will receive a certificate for attending. 757-932-7422


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This website contains general information related to home buying, credit repair, bankruptcy, but it does not offer  LEGAL advice. If you need legal advice, please consult an attorney as there are long term consequences to legal decisions.