AHFA has revised the sales prices limits for borrowers using a Mortgage Credit Certificate. The maximum home purchase price for a loan with a MCC is $253,809 (borrowers in a target area can buy a home costing as much as $310,211).
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 20-50 percent of mortgage interest paid each year. MCCs can be combined with the 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. The new nationwide limits take effect for all loans and MCCs originated as of March 23.