AHFA has revised the income and sales price limits for borrowers using a Mortgage Credit Certificate.
Both the sales price limits and income limits were raised across the board. This means more Alabamians are now eligible to use the MCC program to help make purchasing a home more affordable!
The revised limits are effective for all MCCs originated on or after July 15.
A Mortgage Credit Certificate reduces the amount of federal income tax homebuyers must pay, which in turn frees up income to qualify for a mortgage. Borrowers can claim a federal tax credit worth 20 to 50 percent of mortgage interest paid each year, capped at $2,000 annually. MCCs can be combined with AHFA's Step Up financing to maximize affordability.
AHFA's sales price limits for the MCC program are based on FHA's program loan limits.