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Mortgage Credit Certificate Program

LHC’s Commitment

In keeping with its mission to ensure that every Louisiana resident is granted an opportunity to obtain safe, affordable, energy-efficient housing, the LHC offers the Mortgage Credit Certificate (MCC) Program.

This $5 million statewide program is designed to assist first-time homebuyers, veterans and low to moderate income buyers purchasing a home in designated areas. Homebuyers who use the MCC program can take a federal tax credit of up to 40% of their annual mortgage interest payments for the life of their loan. This credit is capped at $2,000 per year.

Read on to find out if this program is right for you.

 

Program Details

  • Program is available for low and moderate income first-time homebuyers.
  • Household income limits depend on the number of people in the household and the location of the property. Refer to Exhibit T for purchase price limits and Exhibit U for income limits.
  • Homebuyers can take up to 40% of their annual mortgage interest payments (maximum of $2,000 a year) as a tax credit on their federal income tax return.
  • Homebuyers can continue to receive the federal tax credit as long as they occupy the property as their primary residence.
  • Homeowners who use the MCC program must file IRS Form 8396 with their federal tax returns.

Program Benefits

  • The program can be used in conjunction with the LHC's down payment assistance programs.
  • Increases applicant's disposable income, thereby increasing borrower's eligible loan amount.
  • Mortgage Credit Certificates can be layered with any first-time homebuyer loan product except mortgage revenue bonds.
  • Master Servicer approval is not required.
  • Available statewide.

 

Determine If This Program Is Right for You

Not all prospective homebuyers are eligible for this program. To determine if the Mortgage Credit Certificate Program is right for you, follow these simple steps:

STEP #1 – Determine your income: Maximum annual income limits are listed here.

STEP #2 – Choose a Lender:

  • Select a lender. Find approved lenders here.
  • Make an appointment to be pre-qualified.
  • Meet with the lender to:
    • Complete a loan application
    • Order credit report
    • Pre-qualify for a mortgage loan

STEP #3 – Select a Realtor: Begin your home search and once you have signed a purchase agreement, return to the lender to complete the loan process (approved lenders coming soon).

STEP #4 – Reserve Funds: The lender will reserve the Mortgage Credit Certificate for you with the Louisiana Housing Corporation and complete all of the remaining processes from loan application to loan closing.

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