Kentucky Mortgage Credit Certificate (MCC)
Kentucky Housing Corporation (KHC)
Program Overview
The Mortgage Credit Certificate program provides federal income tax credit equal to a portion of mortgage interest paid each year. Tax credit is up to 50% of mortgage interest paid annually (capped at $2,000/year maximum). Lifetime benefit available for life of loan that increases buying power by reducing federal tax liability and increasing take-home pay. Note: Cannot combine MCC with KHC Down Payment Assistance - choose one program.
Eligibility Requirements
• Must have KHC mortgage loan\n• Federal tax liability required\n• Cannot combine with KHC Down Payment Assistance (choose one)
Additional Requirements
• Apply through KHC-approved lender\n• File annual federal tax return\n• Use IRS Form 8396
How to Apply
1. Discuss MCC option with KHC lender during application\n2. Choose between MCC or Down Payment Assistance (cannot have both)\n3. Apply for MCC with mortgage application\n4. Receive MCC certificate at closing\n5. Claim tax credit annually using IRS Form 8396