Florida MCC Program: Tax Credit for Buyers

Save $2000 off Annual Federal Taxes!florida mcc program tax credit


Florida Housing Mortgage Credit Certification (MCC) is a tax credit that can save a home owner up to $2000 off Federal taxes and can be factored into your loan to increase debt to income ratios to improve loan qualification.


The Florida MCC program allows 50% of paid mortgage interest for a tax credit up to $2,000.  Any interest above $2,000 can a be used as a tax deduction.


A tax credit is dollar for dollar credit against taxes due.  A tax reduction is subtraction against adjusted gross income before federal taxes are determined and a percentage of savings.


Florida MCC Program Example


Loan amount:                          $100,000


Interest Rate 4%:                    $4,000 (annual mortgage interest)


50% Tax Credit:                      $2,000 (subtract what you owe in taxes)


Balance Mortgage Interest:       $2,000 (itemized mortgage interest deduction)


Potential Long Term Savings:    30 year loan X $2,000 = $60,000 maximum taxes savings you would not have to pay



Who’s Eligible under the Florida MCC program?


  • The Florida MCC program is available to first time Home Buyers, Veterans, and previous owners that have not owned in 3 years.  Buyer may have to buy in a specific target area.


  • Borrowers have to meet certain income limits in a specific county.


  • Florida MCC program has a Maximum sales price for properties, which varies by county.


  • The home purchase must be a primary residence in order to qualify for the Florida MCC program.


  • FHA, VA, USDA, and conventional loans can all be used for the Florida MCC program.


  • Single Family, Town homes, Condos (Fannie Mae, Freddie Mac, FHA, VA approved), manufactured homes (fixed to permanent foundation).


How to get started?


  • You must use a participating lender.
  • You have to attend an Education Counseling Session.
  • There is a $500 Fee.
  • See Full Florida MCC Program Guideline for more information.


Duration of the Florida MCC Credit


  • Tax credit will last as long as you have annual mortgage interest paid and occupy property as primary residence.
  • It will be revoked if you refinance the property.
  • You may be required to pay IRS back for recapture if you sell within 9 years and make profit and income exceed federal threshold limits during the sale year.
  • This program will expire December 31, 2014. A revised program will being January 1, 2015 to 2017.


There are plenty of reputable Florida lenders participating in the Florida MCC program and Buyers Broker of Florida can make recommendations if you would like to learn more about this program.   The long term savings are fabulous if you plan to occupy your residence for along time.


If you do not qualify for this tax credit program, you would still be eligible for tax deduction on your annual mortgage interest paid.


Buyers Broker of Florida specializes in helping Home Buyers and always makes recommendations to save you money.  Start searching for Orlando Real Estate.

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