Alabama Mortgage Credit Certificate (MCC)

Administered by: Alabama Housing Finance Authority (AHFA) · State · Tax Credit

Funding status: Active

How much assistance

Up to $2,000 per year in federal tax credits (Tax Credit)

Annual tax credit of up to 50% of mortgage interest paid, up to $2,000 per year, for the life of the mortgage.

Income limits: Low to moderate income; limits vary by location
First-time buyer required: Yes — Must be a first-time homebuyer or purchasing in an AHFA-designated targeted area.
Geographic restrictions: Statewide in Alabama.
Homebuyer education required: No

Step 1: Apply through an AHFA-approved lender when obtaining your mortgage. The MCC is issued at closing and used when filing federal taxes.

Can be combined with other AHFA programs. The actual tax credit value depends on the borrower's individual tax situation.