Mortgage Credit Certificate (MCC) Program

Mortgage Credit Certificate (MCC) Program

New York State's Mortgage Credit Certificate (MCC) Program is an alternative way for SONYMA to assist first-time homebuyers.  With an MCC, 20% of your annual mortgage interest can be converted into a tax credit and deducted dollar for dollar from your Federal income tax liability.  The remaining 80% of mortgage interest continues to qualify as an itemized tax deduction.  The credit can be taken to reduce your tax burden every year for the life of the mortgage loan as long as you continue to live in the home. The feasibility of the MCC and the degree to which it can provide housing assistance is totally dependent upon the extent to which you have a federal tax liability, which can be offset by the MCC tax credit.
Start Here With Approved Vendors

Bank of America
Rochester NY

Chemung Canal Trust
Elmira, NY

Contintental Home Loans Inc.
Melville, NY
Queens Village, NY
First Niagara Bank
Batavia, NY
Geneva, NY
Home Funding Finders
East Syracuse, NY
Mortgage Masters, Inc.
Tarrytown, NY
NVR Mortgage Finance Inc.
Pttsford, NY
Wells Fargo Bank, N.A.
Rochester, NY

Program Features...

  • Mortgage Credit Certificates ("MCC") issued by SONYMA enables first-time homebuyers to convert 20% of their annual mortgage interest into a direct income tax credit by filing IRS Form 8396 with their Federal Tax Return for each year of the life of their loan;
  • MCCs can be used with any fixed-rate mortgage product offered by your lender;
  • Borrowers with MCCs can also take advantage of the $8,000 Federal first-time homebuyer credit (if closed by November 30, 2009);
  • Potential applicants will be able to estimate the amount of credit they may be eligible for by using SONYMA's MCC Benefits Calculator by clicking here.

  Eligible Borrowers Must...

  • Be a first time homebuyer as defined by SONYMA;
  • Occupy the home as their permanent residence;
  • Not have used more than 15% of their current residence (or a prior residence) for a business or commercial use in the past year.
Note:  If you currently own a residential investment or vacation home and you intend to retain ownership of the home, you will not qualify for a Mortgage Credit Certificate even if you are attempting to purchase a home located in a Target Area.

Eligible Properties Must...

  • Be located in New York State;
  • Have a sales price that does not exceed SONYMA's Purchase Price limits;
  • Not be have been used for any business or commercial purpose;
  • Be one of the following property types:
  • Additional Considerations...

    • The amount of the MCC tax credit cannot exceed the amount of a borrower's annual Federal income tax liability.  Unused portions of the credit may be carried forward for up to three (3) years.
    • Failure to occupy the property will result in revocation of the MCC.
    • All borrowers are subject to a potential "recapture tax" under Federal law. (Click here for details on recapture tax).
    • MCC recipients will be required to pay a one time MCC application fee of $250 for mortgages equal to or less than $100,000 and $500 for mortgages greater than $100,000.

      Exceptions for Borrowers Purchasing Homes In A Target Area...

    Federal law provides certain special incentives for applicants purchasing homes in Federally-designated Target Areas.  SONYMA is committed to helping revitalize these neighborhoods.

    The incentives are as follows:

    • The first time homebuyer requirement is eliminated;
    • Househould Income and home Purchase Prices Limits are higher (See SONYMA's Household Income Limits and Purchase Prices Limits); and,
    • Two family homes that are new constructed or are less than five (5) years old are eligible.
  1. Existing or newly constructed one family home (includes condominiums and cooperatives);
  2. Existing two, three, and four family home that is at least five years old as of the SONYMA loan application date and has been used only as a residence during the past five years;
  3. Two family home located in a Target Area that is newly constructed or was constructed within the five years prior to the SONYMA loan application date; and
  4. Have a maximum of five (5) acres.