Bootcamp For Buyers

Washington Home Advantage MCC Program

The Washington Home Advantage MCC Program, offered by the Washington State Housing Finance Commission (WSHFC), provides eligible homebuyers with a Mortgage Credit Certificate (MCC) to reduce their federal tax liability. This program makes homeownership more affordable by offering a significant tax benefit for those who qualify.

Benefits

  • Provides a federal tax credit equal to up to 20% of the annual mortgage interest paid, with no annual cap.
  • The credit can be claimed each year for the life of the mortgage, as long as the home remains the buyer’s primary residence.
  • Can be combined with the Home Advantage loan program or other WSHFC programs for additional financial benefits.
  • Reduces overall tax liability, freeing up income for other expenses or savings.
  • Encourages long-term housing stability and equity building for eligible homebuyers in Washington State.

Eligibility Requirements

  • Applicants must be first-time homebuyers or individuals who have not owned a home in the past three years, unless purchasing in federally designated targeted areas.
  • Income limits apply and vary based on household size and the property location within Washington State.
  • The property must be located in Washington and used as the buyer’s primary residence.
  • Participants must apply for the MCC program through a WSHFC-approved lender.
  • Completion of a WSHFC-approved homebuyer education course is required to ensure readiness for homeownership responsibilities.

Additional Information

The Washington Home Advantage MCC Program is an essential tool for homebuyers looking to reduce their federal tax liability and improve the affordability of homeownership. By offering significant financial savings, this program empowers eligible buyers to achieve stable housing and invest in their futures. Administered by the Washington State Housing Finance Commission, the initiative supports sustainable homeownership and strengthens communities across the state.

Frequently Asked Questions About Our Program

What is the Washington Home Advantage MCC Program?

The Washington Home Advantage MCC (Mortgage Credit Certificate) Program provides eligible homebuyers with a federal tax credit, reducing their tax liability and making homeownership more affordable.

How does the MCC Program work?

The MCC Program allows homebuyers to claim a percentage of their annual mortgage interest as a dollar-for-dollar tax credit, while still deducting the remaining interest on their taxes.

Who qualifies for the Home Advantage MCC Program?

Eligibility is based on being a first-time homebuyer, a veteran, or purchasing in a targeted area. Applicants must also meet income and purchase price limits.

What defines a first-time homebuyer for the MCC Program?

A first-time homebuyer is someone who has not owned a primary residence in the past three years. Veterans and buyers in targeted areas may qualify regardless of prior homeownership.

How much of a tax credit can I receive with the MCC Program?

The program allows homebuyers to claim up to 20% of their annual mortgage interest as a tax credit, with a maximum of $2,000 per year.

Are there income limits for the MCC Program?

Yes, income limits vary based on household size and the county where the property is located. These limits are designed to ensure the program benefits low-to-moderate-income families.

What types of properties are eligible for the MCC Program?

Eligible properties include single-family homes, condominiums, and townhouses. Manufactured homes may also qualify if they are permanently affixed to a foundation and meet program guidelines.

Don't miss out!

Check out our program and get started today.

Get Started Now

What is the maximum purchase price allowed under the MCC Program?

As of 2025, the maximum purchase price varies by county but generally ranges from $400,000 to $600,000, depending on program criteria.

Can the MCC Program be combined with other assistance programs?

Yes, the MCC Program can often be paired with down payment assistance and other financial benefits to maximize affordability for homebuyers.

Does the MCC tax credit need to be repaid?

The tax credit does not need to be repaid unless the home is sold or no longer used as a primary residence within nine years, which may trigger a recapture tax.

What is the recapture tax and how does it work?

The recapture tax applies if the home is sold within nine years and the buyer’s income exceeds certain thresholds. Many buyers do not owe this tax, and program details are provided during the application process.

Is homebuyer education required for the MCC Program?

Yes, completing a homebuyer education course is mandatory to ensure buyers understand how to use the tax credit and manage the financial responsibilities of homeownership.

Can the MCC Program be used with FHA, VA, or USDA loans?

Yes, the MCC Program can be combined with FHA, VA, USDA, and conventional loans, provided all program requirements are met.

How long can I claim the MCC tax credit?

The MCC tax credit can be claimed annually for the life of the mortgage loan, as long as the home remains the buyer’s primary residence.

Don't miss out!

Check out our program and get started today.

Get Started Now

Are there location restrictions for properties under the MCC Program?

Yes, the property must be located within Washington State and meet the program’s eligibility criteria for type and purchase price limits.

Do veterans qualify for the MCC Program without being first-time homebuyers?

Yes, eligible veterans can qualify for the MCC Program regardless of prior homeownership, as long as they meet other program requirements.

What are the benefits of the MCC Program?

The program reduces federal tax liability, making homeownership more affordable by freeing up household income for other expenses.

Can the MCC Program be used with adjustable-rate mortgages?

No, the MCC Program is only available for fixed-rate mortgage loans to provide consistent and predictable tax benefits.

What is the application process for the MCC Program?

Applicants work with an approved lender who verifies eligibility, guides them through the process, and issues the Mortgage Credit Certificate upon loan closing.

Is there a fee to participate in the MCC Program?

Yes, a one-time issuance fee may apply, typically included in the closing costs. Specific details are provided by the lender during the application process.

Get More Information

By clicking Submit, you agree that Bootcamp For Buyers, its affiliates, or associated third parties may contact you via emails, calls or texts, including via automated means. You also agree to our Terms of Use and Privacy Policy.