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Mortgage Credit Certificate Program (MCC)

Published on: 9/12/2016 2:14 PM

Mortgage Credit Certificate (MCC) Program


New MCC Applications are currently being accepted.

County of Santa Clara

Office of Supportive Housing

3180 Newberry Drive, #150

San Jose, CA 95118


Contact :

(408) 793-0550

(408) 266-0125 (fax)

In December 2015, the County was awarded $6,250,000 in MCC authority to issue approximately 125-140 Mortgage Credit Certificates (MCC) .  

Program Description

The Mortgage Credit Certificate Program (MCC), authorized by Congress in 1984, provides financial assistance to first-time homebuyer's.  The Santa Clara County MCC tax credit reduces the federal income taxes of qualified Borrowers purchasing qualified homes; thus having the effect of a mortgage subsidy. The current tax credit rate is 15% of the interest paid to the Lender on the first loan or up to 15% based upon an individuals personal tax situation.  The MCC will reduce the amount of federal income taxes otherwise due to the federal government from the Borrower; however, the mortgage tax credit cannot be claimed as a refund.  MCC Borrowers may consider adjusting their federal income tax withholdings so as to benefit on a monthly basis from the MCC. For more information on how to claim the tax credit refer to IRS Publication 530.
Program Eligibility

Review the guidelines below for both “Borrower” and “Property” Requirements to determine if you may be eligible to apply for Santa Clara County's (SCC) MCC program.

Borrower Requirements
  • You must be a U.S. citizen, permanent resident or other qualified alien.
  • Be a first-time homebuyer. See the definition of a first-time homebuyer.
    • Exception to first-time homebuyer requirements:  Home is located in a federally Designated Target Area.
  • Obtain your first loan using a current Eligible Participating MCC Lender or Mortgage Broker.

Property Requirements

  • The sales price of the home must be less than the allowable sales price limits
  • The home must be a single family residence, Condominium, or Townhome.
  • The home can be a detached unit within a planned unit development (PUD).
  • The home can be a condominium or attached unit in a PUD.
  • Guest houses, granny units and in-law quarters may be eligible

Participating MCC  Jurisdictions



Los Gatos


Morgan Hill

Mountain View

Palo Alto

San Jose,

Santa Clara,


and the Unincorporated areas of the County.


2016 MCC Maximum Income Limits (non-Target Areas) (Effective June 15, 2016)

1 or 2 person household:  $106,300

3+ person household:       $122,245


2016 MCC Target Area Maximum Income Limits
1 or 2 person household:   $127,560
3+ person household:        $146,694
2016 MCC Maximum Purchase Price Limits (non-Target Areas)
Existing (Resale) Property:     $570,000

New Construction Property:   $589,785  (Effective June 15, 2016)

Target Area Census Tracts
Homebuyers of properties located in a federally designated target area census tracts are not required to be first-time homebuyers.   Income and Purchase Price maximums are higher that for a home  located in a target area census tract.  To search by property address on the target area census tract map click Target Area Census Tracts.   The areas on the map in purple are qualified target area census tracts. METROPOLITAN STATISTICAL AREA (MSA) of: San Jose-Sunnyvale-Santa Clara, CA MSA.



Target Area Maximum Price Limits  (Effective June 15, 2016)

New Construction Sales Price

Existing Units Maximum Sales Price:    $720,848
Recapture Tax
If you sell or otherwise dispose of your home in associated with an MCC during the next nine years from date of purchase, part or all of this benefit may be “recaptured.” The recapture is accomplished by an increase in your federal income tax for the year in which you sell your home. The recapture only applies, however, if you sell your home at a gain and if your income increases above specified levels. 
For more information about the Recapture Tax read Notice of Potential Recapture Tax (MCC-015) and   Method to Compute Recapture Tax (MCC-016) on the MCC Application and Forms Page.


  • The MCC Application, Brochure, Guidelines, Lender Participation Agreements, and other relevant information is available by clicking on Program Forms.