Virginia Housing Mortgage Credit Certificates

Boost the tax benefits of owning a home!

Virginia Housing Mortgage Credit Certificates


If you're buying your first home, a Mortgage Credit Certificate (MCC) from Virginia Housing could save you thousands of dollars by reducing the amount of federal income tax you owe.


Unlike an income tax deduction, an MCC is a dollar-for-dollar credit against your federal income tax liability:

  • The credit is equal to 20 percent of the annual mortgage interest you pay.
  • The remaining 80 percent may still be taken as a tax deduction.
  • The MCC is effective for the life of your mortgage, as long as you live in the home.

To be eligible for an MCC, homebuyers must:

  • Apply for an MCC with an approved lender and receive a commitment from Virginia Housing prior to closing.
  • Be a first-time homebuyer, or not owned a home as a primary residence within the past three years. (This requirement may be waived if purchasing a home in a federal targeted area.)
  • Have income at or below the maximum household income limits.
  • Purchase a home below the maximum sales price/loan limits.
  • Use the home as their principal residence.

If you obtain and use a MCC and then sell your home in the first nine years of homeownership, you may be subject to the federal recapture tax.


Take the next step by applying for a Mortgage Credit Certificate through any Virginia Housing-approved MCC lender.



Virginia Housing determines whether homebuyers qualify for MCCs under the Internal Revenue Code, but homebuyers must determine for themselves whether an MCC will save them money and how valuable an MCC will be for them over the life of their loan. Virginia Housing cannot and does not give any tax advice to anyone.


If after speaking with your lender you have additional questions, please contact Virginia Housing at:



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