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Mortgage credit certificate: what it means

A mortgage credit certificate (MCC) is a document issued by a state or local housing agency that entitles you to a credit on your federal income tax return for part of the interest you pay on your mortgage each year. Unlike a deduction, the credit directly reduces the tax you owe.

In Spanish it is

Certificado de crédito hipotecario

Also written as: MCC · mortgage interest credit

A man shakes hands with the specialist who helped him with his loan, in the kitchen of his new home.

Verified on October 16, 2026

1 official source

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The full explanation

You claim it with IRS Form 8396, and any credit you cannot use in one year can be carried forward to the next. Each agency sets who qualifies, normally first-time buyers within income and price limits; you apply through a participating lender.

An example

With her MCC, Verónica recovers part of her mortgage interest every year as a credit on her return. Her tax preparer computes it with Form 8396.

You will see it in…

Your state's assistance programs page, when the agency offers an MCC
IRS Form 8396 on your annual return
The certificate the agency gives you after closing

Words that go with it

You will rarely see this word alone. These are the ones that show up with it on the same papers.

More guides that use “mortgage credit certificate”

Still confused by a paper?

A HUD-approved housing counselor can walk you through it. Agencies usually charge little or nothing, many work in Spanish, and they do not sell you anything.

What a housing counselor does See free help

Official sources

We sum up what these official sources say, in plain words. We add no rules they do not state; when a rule changes, the definition and its date change.

1. IRS · About Form 8396, Mortgage Interest Credit (external site) · in English · Verified on October 16, 2026