AHFA has updated the maximum family income and sales price limits used for the Mortgage Credit Certificate program, effective May 18, 2023.

The new income limits were released by the U.S. Department of Housing and Urban Development and are based upon the state's median income. Homebuyers can earn up to $119,400 in target areas and $108,200 in non-target areas, depending on family size.

The new higher sales price and income limits benefit participants in the MCC program, which provides a tax credit to reduce the amount of federal taxes owed by a percentage of the annual mortgage interest paid each year. The remaining annual interest may be claimed as a mortgage interest deduction on the homebuyer's federal tax return.

The maximum sales price in target areas will be $588,104 and $481,176 in non-target areas.

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 may be paired with AHFA's Step Up program or any conventional fixed-rate, FHA, VA, Rural Development, and privately insured mortgages.  

If you have any questions about this information, please contact Tony Lee at tlee@ahfa.com.