First-time Homebuyer Tax Credits


With a Mortgage Credit Certificate tax credit program in Minnesota, you can get up to 25% of the mortgage interest you pay on your mortgage loan back every year as a Federal Income Tax Credit on your tax return.  Up to $2,000 per year.  This can add up to a nice extra tax savings every year over the life of your mortgage loan. **

Combine a a Mortgage Credit Certificate (MCC) with a down payment assistance programs for additional savings on your new home



Three easy application options:


1) Apply Online 24/7

2) Call (651) 552-3681

3) Visit us in our St Paul, MN Office



Download a MCC Flyer - print out and keep handy


NOTE: Mortgage Credit Certificates are no longer available with a Minnesota Housing Finance Agency's Start Up / Step Up assistance program as of Feb 2017 and may be very difficult to find.



To be eligible for a Mortgage Credit Certificate, you must:

  • Be a first-time homebuyer (or have not owned a home in three years)
  • Qualify for a home mortgage
  • Meet income limits
  • Plan to live in the home as your primary residence
  • Have a federal income tax liability (owe taxes)
  • Get a n underlaying assistance loan that allows MCC's

Next Steps:

  • Contact a tax professional to see if this program would benefit you.
  • Apply for a mortgage loan online, or call (651) 552-3681
  • Tell your Loan Officer you want to see if you qualify for the Mortgage Credit Certificate
  • Apply for the MCC Program before your mortgage closes.
  • A Homebuyer education class may be required for some mortgage programs.

Frequently Asked Questions

How much money can I save with an MCC?
Savings vary, depending on your loan amount and interest rate.

Example savings:

  • $175,000 loan amount at 3.50% interest
  • Would give a maximum estimated savings over the life of the loan = $33,700 for a perfect client. Most people will see significantly less **
Can an MCC benefit me if I don’t have a federal income tax liability?
No, the MCC reduces your federal income tax burden so if your tax liability is $0.00, the MCC will save you $0.00.
What is a federal tax income tax liability?
The actual amount that you owe the federal government, which they may collect from your tax withholdings from your paychecks or at tax time. Want to know what your tax liability was last year? Check your most recent tax return.
Form You Used
Line showing your tax liability
line 35
line 10
line 61
How long can I use the mortgage credit?
You can use the MCC for up to 30 years, or until you refinance, sell the home or move. You may have the MCC re-issued when you refinance if your new mortgage meets the program requirements.

Can I still take the mortgage interest deduction on my income taxes?
Yes, you can deduct the remaining 75% of the mortgage interest paid.

How much help can I get for my downpayment and closing cost assistance?
You can get both an MCC and a downpayment assistance loan.  Contact your Loan Officer, or read more information here.


** Maximum tax savings varies depending on multiple factors, including your personal tax liability, loan amount, interest rate, and actual loan interest paid each year. It is possible to see $0.00 in tax savings.


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HUD, The VA, and the USDA requires those who offer their mortgage loans go through a stringent approval process. We are an approved FHA, VA, and USDA mortgage lender. We are not acting on behalf of, or under the direction of the VA or the Federal Government. HUD / FHA and the VA do not lend directly to the public, only through approved lending institutions like Mortgages Unlimited.