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Mortgage Credit Certificate is back!

Who would object to reducing their monthly mortgage payment? The MCC is back for Hawaii residents looking to decrease their monthly mortgage payment and thereby increasing their buying power. Every dollar helps!

The State of Hawaii has allocated $17.75 million for 2023 backed by bonds. The savings is given to the borrower by allowing for a special federal income tax credit. Homeowners with the MCC may take 20% of their annual mortgage interest as a direct federal tax credit! The remaining 80% of their annual mortgage interest may qualify in calculating itemized tax deductions. Borrowers must apply for the MCC when applying for a loan when purchasing a property.

Income restrictions for a family of 3 or more residing in Honolulu County is no more than $166,392 and the purchase price limit is $631,247.

MCC applicants must:

  1. use the property as a principal residence during the period that the MCC is in effect, otherwise the MCC will be revoked; and

  2. not have ownership in a principal residence anytime during the preceding three-year period; and

  3. the loan must be a new loan (no refinances on an existing loan.)

Certain "recapture tax" provisions may apply in specific situations. There are also other provisions or limitations that may apply in calculating the annual credit.

For more information, give me a call. Also click here to see State of Hawaii MCC Info.

For a brochure, click here.

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