MSHDA Mortgage Credit Certificate (MCC)

Overview

Not a one-time grant but a raise: 20% of your mortgage interest comes back as a federal tax credit every year you own the home, up to $2,000.

Detailed requirements

First-time homebuyer statewide, or any buyer in a targeted area. Home must be the principal residence in Michigan. Mortgage must be a non-MSHDA loan (FHA, VA, RD, or conventional) originated by an MSHDA MCC participating lender. Household income and purchase price within MSHDA limits for the county. Credit equals 20% of annual mortgage interest paid, capped at $2,000 per year, for the life of the original mortgage while the home remains the principal residence. Remaining interest is still deductible.

Eligibility at a glance

First-time buyer required

Yes

Owner-occupied required

Yes

Note: Repeat buyers qualify in federally designated targeted areas. Only pairs with non-MSHDA mortgages (FHA, VA, USDA, conventional). MSHDA income and purchase-price limits apply by county. Must be obtained through an MSHDA MCC lending partner at the time of purchase; it cannot be added later.