The Mortgage Credit Certificate (MCC) is an IRS tax credit that can reduce a homeowner’s  tax liability on their federal return.

Who is this program for?

This program is for First Time Homebuyers who intend to occupy the property as their primary residence and whose household income is within the set income limits for the county.

The applicants and ALL household members over the age of 18 must be first time homebuyers. (1)

The income limits for this program can be found on the INCOME LIMITS PAGE

How does the program work?

The program gives homeowners a tax credit equal to 20% of the annual interest paid on the mortgage loan.  The remaining 80% of the mortgage interest paid would continue to be an itemized deduction.

The mortgage interest deduction is one of the benefits of homeownership.  Most often, the interest and property tax deduction allows you to reduce your taxable income in comparison to taking the standard deduction.

The programs are offered through approved lenders and underwritten by CalHFA.  Interest rates are set by CalHFA and non negotiable.

All applicants must complete an approved homebuyer education class.

What properties are eligible?

The property must be located within the state of California and must be occupied as the primary residence of the borrower. The eligible property type will depend on the type of first mortgage being used

Conventional CalHFA loans

Single family, manufactured housing, townhomes and condominium properties are eligible.

FHA CalHFA loans

Single family, manufactured housing and FHA approved townhomes and condominium properties are eligible.

VA CalHFA loans

Single family homes and VA approved townhomes and condominium properties are eligible.

USDA CalHFA loans

Single family, townhomes and condominium properties are eligible.  Manufactured homes are eligible ONLY if the borrower will be the First owner.

Where do I apply?


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(1) Borrowers purchasing in targeted neighborhoods are exempt from the first time homebuyer requirement.

(2) Minimum credit score of 660 for borrowers with income less than or equal to the HomeReady income limits 

(3)School Employees is defined as teachers, administrators, school district employees and staff members working for any California public school (pre/TK-12) or public-school district, which includes Charter schools and county/continuation schools.

(4) Fire Department Employees is defined as firefighters, administrators and all other state, federal, local or tribal fire department employees.