Sacramento Mortgage Credit Certificate

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The Sacramento Mortgage Credit Certificate (MCC) Program is designed to provide homeownership assistance on home purchases within the cities of Rancho Cordova, Sacramento, Elk Grove, Folsom, Isleton, Galt, Citrus Heights, and the County of Sacramento. The MCC reduces the amount of Federal income tax a homebuyer pays, thus giving more available income to qualify for a mortgage loan and to make monthly mortgage payments.

Program Features

  • 20% Mortgage Credit Certificate – A tax credit of 20 percent of the annual mortgage interest paid (amount of the credit cannot be more than the annual federal income tax liability after all other credits and deductions have been taken into account).
  • MCC will be in effect for the life of the original mortgage loan provided property remains owner occupied.
  • MCC may be reissued one time, upon the first refinance of the original mortgage loan.
  • MCCs may be used with conventional loans, fixed-rate or adjustable loans, FHA and VA loans (MCCs are not available with bond-backed loans such as CHFA or Cal-Vet).
  • 40 percent of an MCC allocation is reserved for households whose income does not exceed 80 percent of the area median adjusted for family size.

Eligible Applicants

Homeowners who:

  • Are first-time home buyers who have not owned and occupied a home as a principal residence within the preceding three years (in federally designated target areas, you do not have to be a first-time home buyer).
  • Are able to qualify for a loan to purchase the home.
  • Will live in the home being purchased.
  • Do not exceed the following income limitation:

Household Non-Target Areas Target Areas
1 or 2 person household $68,000 $81,600
3 or more person household $78,200 $95,200

Eligible Properties

Single family homes that are located within the cities of Rancho Cordova, Sacramento, Elk Grove, Folsom, Isleton, Galt, Citrus Heights, and the unincorporated areas of the County of Sacramento.

Maximum purchase price limits

Category Non-Target Areas Target Areas
New and Existing Homes $438,415 $535,841

Federally Designated Target Areas

The following census tracts are federally designated target areas:

5, 6, 7,11.01,18, 20, 22, 27, 28, 32.02, 32.03, 32.04, 37, 41, 42.02, 42.03, 43, 44.01, 44.02, 45.01, 45.02, 46.01, 46.02, 47.01, 48.01, 48.02, 49.03, 49.05, 50.02, 52.01, 52.05, 53.01, 55.02, 55.05, 55.06, 55.09, 56.01, 56.05, 61.01, 62.01, 62.02, 63, 64, 65, 66, 67.02, 68, 70.01, 70.19, 73.01, 74.13, 74.14, 74.23, 74.24, 81.33, 89.11, 90.06*, 90.07*, 90.08*, 91.05, 91.10. 92.01, 95.03, 96.06, 96.33

Application Procedure

To apply for the program, please contact any of our approved lenders. The MCC application is made in conjunction with the application for a mortgage loan to purchase the home. The MCC application must be approved prior to close of escrow on the home purchase. For additional information, please call (916) 440-1393.