Mortgage Credit Certificate

What is MCC

The Mortgage Credit Certificate (MCC) is one of the most underutilized programs. This program is available to homebuyers in Hawaii, providing a unique opportunity to save money on their federal income taxes. The program is administered by the Hawaii Housing Finance and Development Corporation (HHFDC) and is designed to help low-to-moderate-income homebuyers afford their mortgage payments.

Under the program, eligible homebuyers can claim a federal tax credit of up to 20% of the mortgage interest paid each year, which can result in significant savings over the life of the loan. The credit can be claimed yearly for as long as the homebuyer continues to live in the home and pay mortgage interest.

How to Qualify

To qualify for the MCC program in Hawaii, homebuyers must meet certain income and purchase price limits, which vary depending on the property’s location and the number of people in the household. The home you purchase must also be used as your primary residence. Also, the mortgage loan must be a new loan. MCC cannot be issued on a refinance in which the original loan was not an MCC loan. Lastly, if your current loan is an MCC loan and you want to refinance, you must ensure you refinance with an approved MCC lender. There have been instances where MCC is lost on a refinance because the lender was not approved. This is why working with a knowledgeable mortgage broker who understands the rules and regulations is so important.

Who can Qualify

The MCC program in Hawaii is available to first-time homebuyers and repeat homebuyers. However, the program is unavailable to those who have owned a home in the past three years. The HHFDC also encourages homebuyers to explore other homebuyer assistance programs, such as the Down Payment Assistance Program, to help them achieve their dream of homeownership.


In conclusion, Hawaii’s Mortgage Credit Certificate program provides a valuable opportunity for eligible homebuyers to save money on their federal income taxes. Homebuyers should consult with a tax professional and their favorite Smart Money loan originator to determine eligibility for the program and how to apply.