Entertaining AHFA Video Designed to Clarify MCC Program

Though it’s made homeownership more affordable for nearly 5,000 Alabama households, the Mortgage Credit Certificate (MCC) is one of the most misunderstood housing programs on the market today.

Tens of thousands of dollars in tax credits are available to your customers through this federal program.

MCC Class is in session! Click above to watch ‘Albert Budstein’ in action.

The Alabama Housing Finance Authority (AHFA) offers this incentive to help your customers boost their purchasing power. An MCC gives homebuyers a tax credit to reduce the amount of federal taxes owed, based on a percentage of the annual mortgage interest paid each year. The remaining annual interest can still be claimed as a mortgage interest deduction on the homebuyer’s federal tax return.

To increase understanding of the program, AHFA has created a new video featuring an animated “Albert Budstein” to explain the savings in simpler terms. The 8-minute video answers frequent customer questions and shows how the savings multiply over the life of a 30-year loan.

“The MCC is one of the most financially powerful tools out there for potential homebuyers,” said AHFA Single-Family Administrator Carrie Hamaker. “Using it can save your customers literally thousands of dollars on their tax bills, which frees up income so they can qualify for a nicer home.”

Qualified homebuyers will receive a larger federal tax break or tax refund each year or benefit from immediate savings by updating the withholdings on their W-4 form. MCCs also may be paired with AHFA’s Step Up program, adding up to $10,000 in down payment funds to the MCC savings.

  • MCCs are available with 30-year, fixed-rate, amortizing conventional, FHA, VA, Rural Development, and privately insured mortgages.
  • Applications are accepted on a first-come, first-served basis by a statewide network of 88 participating lenders. See the full list or find out how to join them at ahfa.com/homebuyers/how-do-i-apply.
  • Participants must meet federally established income and sales price

“We know that market conditions are challenging right now, but we’re here to help,” said Hamaker. “AHFA is committed to bringing bankers every tool possible to serve potential home buyers.”