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Program: Portland Mortgage Credit Certificate

Detail Verified 4/28/2020 - Last Updated 6/12/2019

Program Overview

A direct federal income tax credit that reduces the federal income taxes of a qualified borrower. 20% of the annual mortgage interest paid is a federal income tax credit, while the remaining 80% continues to qualify as an itemized deduction. $775 fee due upon closing if program is used.

MCC Target Areas


Property must be located within the City of Portland.

Who is Eligible for this Program?

Borrowers must be first-time homebuyers unless the property being purchased is in one of the two target areas. In this case the first-time homebuyer requirement is waived. Must meet mortgage lender requirements. Mortgage Credit Certificate (MCC) may not be combined with Oregon Bond or Oregon Department of Veterans' Affairs (ODVA) loan. Borrowers must have a tax liability to benefit from an Mortgage Credit Certificate (MCC). Federal recapture tax applies.

Annual borrower and co-borrower income limits: $87,900 (1-2 people), $101,085 (3+ people)
Buyers must apply through a PHB approved loan officer and lender.

HUD Median Income Limits: 120%

Is this program for first time buyers only?: Yes

Property Eligibility Requirements

To verify location eligibility go to

The sales price cannot exceed $454,177.

Allowable property types: single-family units, including condos and townhomes

Benefit Details

This program helps address the minority homeownership gap.

Benefit: Lowers homebuyers' tax liability, increases purchasing power and lowers debt-to-income ratios.

Homebuyer Counseling / Education Required: Yes

Owner Occupancy Required: Yes

Other Program Comments: Mortgage Credit Certificate (MCC) is available to many households that don't qualify for other programs.

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