Hawaii MCC Tax Credit 

The Mortgage Credit Certificate (MCC) program is available to home buyers who meet household income and home purchase price limits.  The MCC program reduces the amount of federal income tax you pay, thus giving you more available income to qualify for a mortgage loan and assist you with house payments. 

Example:  Home Loan equals $200,000 and interest rate is 4.25%.   The monthly tax credit is $200,000 x 4.25% = $8500 (annual interest) x .20% (Tax credit) = $1700 annual MCC tax credit / $141.67/m (Monthly MCC Tax Credit) 

The MCC tax credit in the scenario above provides the homeowner an additional $141.67/m in savings.  The MCC tax credit remains in effect for the life of the mortgage loan, and as long as the home remains your principle residence.  The MCC tax credit needs to be claimed on the Federal Tax returns every year to receive the credit.  

The requirements to receive the MCC tax credit are to purchase a home as your primary residence,  have no ownership interest in a principal residence within the last 3 years, and meet the income and purchase price limits on the charts below: 

Income Limits:

County Families of 2 or less  Families of 3 or more
Hawaii $82,400 $94,760
Honolulu $120,600 $140,700
Kauai $98,400 $114,800
Maui $96,600 $112,700

Purchase Price Limits:

County Newly Constructed of Existing Residences 
Hawaii $338,823
Honolulu $663,882
Kauai $656,470
Maui $605,646

Please contact, Heidi Lawler for more details on this program at 808-494-5789 or heidi@cap-loan.com