Mortgage Credit Certificate Program

The Mortgage Credit Certificate Program, authorized by Congress in the Deficit Reduction Act of 1984, is an alternative to mortgage revenue bond-backed financing as a means of providing financial assistance for the purchase of single-family housing. In 1985, the State adopted legislation authorizing local bond-issuing agencies to make Mortgage Credit Certificates (MCCs) available in California. This program is designed primarily to benefit first-time homebuyers of new or existing housing units throughout the City of Oceanside.

What is a Mortgage Credit Certificate?

The Mortgage Credit Certificate operates as an IRS tax credit. With a Mortgage Credit Certificate, the qualified buyer becomes eligible to take a federal tax credit of twenty percent (20%) of the annual interest paid on the mortgage. This credit reduces the federal income taxes of the buyer, resulting in an increase in the buyer's net earnings. Increased buyer income results in increased buyer capacity to qualify for the mortgage loan.

How to Apply For a Mortgage Credit Certificate

The City of Oceanside contracts with Affordable Housing Applications, Inc. to administer the Mortgage Credit Certificate Program. Please call 619-469-0270 to apply.