Kentucky · Annual tax credit

Kentucky MCC

Annual tax credit on mortgage interest

Federal tax credit on mortgage interest paid. Reduces taxes every year for the life of the loan.

Kentucky's Mortgage Credit Certificate offers a federal tax credit on annual mortgage interest paid. The credit directly reduces your tax bill — more valuable than a deduction of the same amount.

KHC's MCC can be stacked with either the Regular or Affordable DAP, creating a package of upfront DPA plus ongoing annual tax savings. Kentucky's low home prices mean the percentage credit translates well even on modest mortgages, providing meaningful annual savings for low-to-moderate income buyers.

AmountAnnual tax credit on mortgage interest
TypeAnnual tax credit
Available inKentucky
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
KHC Regular DAP $6,000
Kentucky · Low-interest loan
KHC Affordable DAP $6,000
Kentucky · 1% interest loan
All Kentucky programs →

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