The Portland Housing Bureau (PHB) partners with local lenders to offer eligible first-time homebuyers a federal tax credit called a Mortgage Credit Certificate (MCC). An MCC is an IRS-approved tax credit which reduces the homebuyer's federal income taxes owed as long as they keep the loan, continuously occupy the home as their principal residence, have a tax liability, and utilize the MCC when they file their taxes.

The tax credit helps the homebuyer increase their disposable income and therfore more comfortably afford their monthly house payments. The maximum amount of the MCC tax credit equals 20 percent of the annual mortgage interest paid on the homebuyer's first mortgage loan. For underwriting purposes and depending on the type of loan utilized, the amount of the monthly tax credit can either be added to the homebuyer's income or subtracted from their qualifying monthly house payment resulting in increased buying power for the homebuyer.

To apply for the tax credit, please contact an approved loan officer. As a key part of delivering the program, the participating lenders have agreed to affirmatively market the program to people of color and help PHB address the minority homeownership gap.