Indiana · Annual tax credit

IHCDA Mortgage Credit Certificate

Annual tax credit + DPA stacking

Federal tax credit on mortgage interest. Stackable with First Step or Next Home DPA programs.

Indiana's Mortgage Credit Certificate offers a 25% credit rate on annual mortgage interest, translating to roughly $2,000-3,000 per year in federal tax credits for a typical Indiana homebuyer. The credit is not a deduction — it reduces your tax bill dollar for dollar.

The MCC can be stacked with Indiana's First Place or Next Home DPA programs. The combination of upfront DPA plus ongoing annual tax credits creates a comprehensive benefit package. Over a 10-year period, the total value of combined DPA plus MCC savings can exceed $30,000.

AmountAnnual tax credit + DPA stacking

TypeAnnual tax credit

Available inIndiana

First-time buyer requiredYes

Minimum credit score640

Multi-unit eligibleSingle-family only

Programs that pair with this

FHA Loan Saves ~$33,000 on a $200K home vs 20% down

Federal · Subsidized loan

VA Loan $0 down + no monthly mortgage insurance

Federal · Federal benefit

NACA Program $0 down + $0 closing + $0 PMI + below-market rate

National · Nonprofit program

IHCDA First Step 6% of price — forgivable after 5-7 years

Indiana · Forgivable loan

IHCDA Next Home 3-4% forgiven in 2 years — repeat buyers OK

Indiana · Forgivable loan

IHCDA Step Down Interest-only payments = lower monthly cost

Indiana · Subsidized loan

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