New Hampshire Mortgage Credit Certificate (MCC) Program Guide

Guide to the New Hampshire Mortgage Credit Certificate (MCC) Program

The New Hampshire Mortgage Credit Certificate (MCC) Program is a valuable initiative that helps homebuyers reduce their federal tax liability by providing a tax credit on mortgage interest. This program is designed to make homeownership more affordable for eligible first-time buyers and others meeting specific criteria. Below is a detailed guide to the program’s benefits, eligibility requirements, and how to apply for 2025.

1. Program Overview:

• Purpose: The New Hampshire MCC Program provides homebuyers with a federal tax credit, allowing them to reduce their tax liability and save money over the life of their mortgage.
• Tax Credit: Participants can claim up to 30% of their annual mortgage interest as a federal tax credit, with the remaining interest deductible on their federal tax return. This credit directly reduces the amount of taxes owed each year.
• Eligibility Duration: The tax credit is available for the life of the loan, as long as the home remains the buyer’s primary residence.

2. Eligibility Requirements for 2025:

To qualify for the New Hampshire MCC Program, applicants must meet the following requirements:

• First-Time Homebuyer: Applicants must be first-time homebuyers, defined as individuals who have not owned a home in the last three years. Exceptions may apply for homes purchased in targeted areas or for eligible veterans.
• Income Limits: Household income must fall within the program’s limits, which vary based on location and household size. These limits are updated annually to reflect area median income (AMI).
• Purchase Price Limits: The home’s purchase price must not exceed the program’s maximum limits, which are adjusted yearly and vary by location.
• Primary Residence: The property must be located in New Hampshire and used as the buyer’s primary residence. Investment properties and vacation homes are not eligible.

3. How to Apply:

The application process for the New Hampshire MCC Program involves the following steps:

• Contact a Participating Lender: Work with an approved lender who offers the program. They will verify your eligibility and guide you through the application process.
• Gather Required Documentation: Provide proof of income, tax returns, and purchase agreements, as well as any other documentation requested by your lender.
• Submit Your Application: Complete your application through your lender, who will handle the processing and issuance of your Mortgage Credit Certificate.

4. Program Benefits:

• Tax Savings: The program allows homebuyers to save thousands of dollars over the life of their mortgage by reducing their federal tax liability.
• Long-Term Affordability: With the annual tax credit, participants can free up additional income for other expenses, making homeownership more financially sustainable.
• Combination with Other Assistance: The MCC Program can often be combined with down payment assistance and other homebuyer programs to maximize benefits.

5. Key Details:

• Carryforward Option: If the tax credit exceeds the participant’s federal tax liability in a given year, the unused portion can typically be carried forward to future tax years, subject to IRS rules.
• Non-Refundable Credit: The MCC is a non-refundable tax credit, meaning it can reduce your tax liability to zero but cannot result in a refund.

6. Additional Considerations:

• Program Fees: Some fees may apply during the application process, which your lender will disclose in detail.
• Eligibility Confirmation: Work closely with your lender to ensure you meet all requirements and maximize your tax credit benefits.

The New Hampshire Mortgage Credit Certificate (MCC) Program is an excellent resource for eligible homebuyers looking to save money and make homeownership more affordable in 2025. By reducing annual tax liability, the program provides long-term financial benefits. Contact a participating lender today to learn more and begin your application process.