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Iowa Mortgage Credit Certificate (MCC)

Administered by: Iowa Finance Authority · State · Tax Credit

Funding status: Active

How much assistance

Up to $2,000 federal tax credit per year (50% of annual mortgage interest paid) (Tax Credit)

Credit is available annually as long as the home remains the owner's primary residence.

Eligibility

  • Income limits: Varies by IFA loan program. Household income limits apply.
  • First-time buyer required: Yes — Generally limited to first-time buyers; targeted areas may be exempt.
  • Geographic restrictions: Home must be in Iowa.
  • Homebuyer education required: No

How to Apply for Iowa Mortgage Credit Certificate (MCC)

Step 1: Apply through an IFA participating lender at the time you apply for your first mortgage. The MCC is issued at closing and allows the borrower to claim the credit on their federal tax return each year.

Notes

Recapture tax may apply if sold within 9 years. MCC may be reissued on refinance under certain conditions.

Available Statewide In