How does the San Mateo County MCC program help first time home buyers save money?

July 28, 2008 · Dean Rizzi

First of all, what is MCC anyway? MCC stands for Mortgage Credit Certificate. The MCC is a federal tax credit for eligible first-time homebuyers. It helps first time buyers by giving them an additional tax benefit in addition to the normal tax benefit from owning a home to begin with.

Here is how it works. Most homeowners will deduct all the mortgage interest they paid during the year from their gross income and hence not pay taxes on that part of their income. MCC allows the homeowner to take 15% of that interest deduction and make it a credit toward their total tax liability. In other words, it’s a “credit” toward the actual taxes they owe. The end result is the homeowner will save between $200 and $300 per month by being in this program. This sometimes helps the buyers qualify for a little more house too.

For more information on how the interest deduction works, try the IRS web site at www.irs.gov and look up the following:

Publication 530 Tax Information for First-Time Homebuyers
Publication 523 Selling Your Home
Publication 936 Home Mortgage Interest Deduction

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Filed Under Real Estate Finance

Tags: FTB, MCC, Mortgage Credit Certificate, San Bruno first time home buyer, SSF, tax credits

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Comments

3 Responses to “How does the San Mateo County MCC program help first time home buyers save money?”

Mike Harmon on July 28th, 2008 11:38 am

I just stopped by your blog and thought I would say hello. I like your site design. Looking forward to reading more down the road.
KC on July 28th, 2008 2:15 pm

Great post! I look forward to the FHA meeting on Thursday!
AlexM on August 17th, 2008 12:14 pm

Your blog is interesting!

Keep up the good work!