Mortgage Credit Certificates (MCCs)
An MCC lets you claim a percentage (often 20-50%, set by the issuing state agency) of the mortgage interest you pay each year as a dollar-for-dollar federal tax credit, on top of deducting the remaining interest if you itemize.
Mortgage Interest Deduction
If you itemize deductions rather than taking the standard deduction, mortgage interest on loan balances up to $750,000 (for loans originated after 2017) is deductible — though most first-time buyers with smaller loans find the standard deduction is still larger.
Property Tax Deduction
State and local taxes, including property tax, are deductible up to a combined $10,000 cap (the SALT cap) if you itemize.
State-Specific First-Time Buyer Credits
Some states offer their own first-time buyer tax credits or exemptions from transfer taxes — check with your state's department of revenue or housing finance agency for programs specific to where you're buying.
This page is for educational purposes and isn't personalized financial or tax advice. Figures, rates, and program details change frequently — confirm current terms directly with lenders, tax professionals, or the IRS before acting.