MCC Highlights

DCHFA relaunched the MCC during Homeownership Month in June 2022. Originally created in 2016, the MCC is a powerful tool that allows homeowners to claim a federal tax credit of 20 percent of the mortgage interest paid during a calendar year. The remaining 80 percent of mortgage interest paid for that year may still be claimed as a tax deduction. The 20 percent credit allows homeowners to receive more cash back in their pockets each tax season.

From June until the end of FY 2022 in September, the Agency issued 80 MCCs on a total of $25.9 million first trust loans. Homebuyers can purchase an MCC at a discount if they combine it with DC Open Doors or HPAP, but they do not have to use one of these two programs in order to buy an MCC and take advantage of the tax benefits.