Mortgage Credit Certificate (MCC)
AL Housing Authority
Program Overview
The MCC program provides a federal income tax credit based on a portion of the mortgage interest paid annually. This reduces federal tax liability and increases take-home pay.
Eligibility Requirements
First-time homebuyer in most cases Property must be primary residence in Alabama Income limits apply (varies by county) Purchase price limits apply Cannot be used for refinancing
Additional Requirements
First-time homebuyer in most cases Property must be primary residence in Alabama Income limits apply (varies by county) Purchase price limits apply Cannot be used for refinancing
How to Apply
Work with an AHFA-approved lender who can process your MCC application concurrently with your mortgage. The MCC must be issued before loan closing. File IRS Form 8396 annually with your federal tax return.