Mortgage Credit Certificate Program

The Mortgage Credit Certificate (MCC) Program is a federal Income Tax Credit Program administered by the County of Orange. The MCC program was originally created by Congress through the Tax Reform Act of 1986. The program provides assistance to first-time homebuyers in the purchase of owner-occupied residential units. The MCC program increases the loan amount offered to a qualifying homebuyer and reduces federal income taxes by 15% of the annual interest paid on a home mortgage. The MCC program entitles qualified home buyers to reduce the amount of their federal income tax liability by an amount equal to a portion of the interest paid during the year on a home mortgage. This tax credit allows the buyer to qualify more easily for a loan by increasing the effective income of the buyer. Because the borrower's taxes are being reduced by the amount of the credit, this increases the take-home pay by the amount of the credit, thus enabling the buyer to qualify for a larger loan than would otherwise be possible.