Provides the income eligible buyer with an opportunity to reduce the amount of federal income tax otherwise due by an amount equal to 15% of the mortgage interest payments at a dollar for dollar credit. The remaining 85% can be taken as the usual allowable deduction of the itemized return. The result increases the household’s overall income and ability to qualify for a mortgage loan. The program sets property price limits but provides some incentive in the relaxation of restrictions in the purchase of properties in designated target communities.
The Mortgage Credit Certificate program can help you qualify for a mortgage loan by increasing your buying power at your current income. The Mortgage Credit Certificate "MCC" Program, authorized by Congress in the Tax Reform Act of 1984, provides assistance to first-time homebuyers for the purchase of owner-occupied single family homes, duplexes, townhomes, and condominiums. An MCC will reduce the amount of your federal income taxes otherwise due but not to exceed the amount of federal taxes owed for the year after other credits and deductions have been taken. However, the unused tax credits can be carried forward three years, until used. The federal income tax advantage provided by the MCC for a homebuyer who keeps the same mortgage loan and lives in the same house in the Alameda County will be equal to 15% of the mortgage interest paid annually on a dollar for dollar basis. This means the total of 15% of your mortgage interest is deducted directly from your annual tax debt. The remaining 85% of your mortgage interest is taken as a deduction from your gross income in the usual manner. This result in making you qualified for a greater mortgage amount with the same income. What is the maximum purchase price for property purchased with an MCC? In order to qualify for the MCC program your home cannot exceed the following maximum sales price:

Existing Home (Resale) $569,632

New Home (Not previously owned) $592,765

Buyer Eligibility Who is considered to be a first time homebuyer? Those persons who have not had an ownership interest in a "Principal Residence" within the last three years. If you have claimed mortgage interest deductions on your tax returns at any time in the previous three tax years you cannot qualify. Please note that you do not have to be considered a first time homebuyer in order to purchase in the target area if you meet income requirements defined as follows. How much income can I earn to qualify? The total household income (including the income of anyone who is both residing in the property, responsible for the mortgage and/or any co-mortgagor listed on title) cannot exceed:
    1 or 2 person Household $82,200
    3 or more person Household $94,530