The CHFA Mortgage Credit Certificate program has not issued new certificates since 2018. This page is for Colorado homeowners who already received a CHFA MCC and want current information about using it, refinancing a related mortgage, or requesting a replacement or reissued certificate.
A Mortgage Credit Certificate, commonly called an MCC, is a certificate issued under a qualifying state or local program. An eligible certificate holder may use IRS Form 8396 to calculate a federal mortgage interest credit based on the information shown on the certificate.
An MCC is not a loan, a cash grant, or an automatic refund. The amount of any allowable credit depends on the certificate, mortgage interest paid, applicable federal limits, and the homeowner’s individual tax situation.
No. CHFA states that it has not issued new MCCs since 2018. Information on this page should not be used to suggest that a current Colorado homebuyer can add a new MCC to a purchase loan.
According to CHFA, an existing MCC can remain valid for up to 30 years while the home remains the certificate holder’s principal residence and the homeowner continues paying mortgage interest on the related loan. The certificate may cease to apply after the home is sold, is no longer used as the principal residence, or the qualifying mortgage interest is no longer being paid.
CHFA provides a process for eligible current MCC holders to request a reissued Mortgage Credit Certificate when refinancing. CHFA states that the reissued certificate is based on the amortized balance of the original loan, even when the new refinance balance is higher.
A refinance does not automatically preserve the certificate. Existing holders should review CHFA’s current reissuance instructions and coordinate the timing and documentation before completing the new mortgage.
I can help compare the current mortgage with potential refinance structures, including payment, closing costs, break-even period, cash-out considerations, and the steps that may be needed to preserve an eligible existing MCC.
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The IRS directs qualified MCC holders to use Form 8396, Mortgage Interest Credit. The certificate supplies information needed for the calculation, including the certificate credit rate and certified indebtedness amount.
The IRS also explains that taxpayers who itemize deductions generally must reduce their home mortgage interest deduction by the mortgage interest credit allowed for that tax year. Tax results vary, so homeowners should consult a qualified tax professional about their own return.
Some MCC holders who sell their home within nine years may be subject to federal recapture rules. Whether recapture applies depends on federal requirements and the homeowner’s circumstances. Review the certificate documents, current IRS guidance, and advice from a qualified tax professional before relying on an estimate.
No. CHFA states that it has not issued new MCCs since 2018.
CHFA maintains a reissuance process for eligible current holders. Review CHFA’s current instructions before closing the refinance.
No. The allowable mortgage interest credit depends on the certificate, federal rules, mortgage interest paid, tax liability, and the homeowner’s individual tax situation.
Important information: This page is for general educational purposes. It is not tax advice, legal advice, a mortgage approval, or a representation that a new MCC is currently available. Program procedures and federal tax rules can change. Consult CHFA, the IRS, and a qualified tax professional for guidance specific to your certificate and tax return.
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