The Indiana Housing and Community Development Authority (IHCDA) is proud to make the dream of buying a home a
reality for thousands of families across Indiana. The IHCDA promotes responsible home ownership through
programs that assist Hoosiers with closing costs, making down payments and obtaining low interest fixed rate
loans. The Homeownership programs listed below apply to single family dwellings, multi-family dwellings (2-4
units), townhouses, condominiums and modular homes. Provided below is a brief overview of IHCDA’s
(IHCDA) MORTGAGE CREDIT CERTIFICATE (MCC)
The Mortgage Credit Certificate offers qualified first-time homebuyers an annual tax
credit on their federal tax liability for the duration of their mortgage.
• Tax credit amount ranges between 20% and 35% of the mortgage interest paid
• Credit can be claimed each year, through life of mortgage
• Maximum credit per year is $2,000
• MCC can be re-issued to a refinanced mortgage, in most cases
Next Home offers prospective homeowners down payment assistance (DPA).
• 4% DPA on FHA loans (maximum loan-to-value is 96.5%)
• 3.5% on FHA and 3 on Conventional loans (maximum loan-to-value is 97%)
• No first-time homebuyer requirement
• No purchase price limits
• DPA is forgiven in 2 years
NEXT HOME WITH MCC COMBO
Next Home with MCC Combo provides the tax benefits of the MCC and the down payment assistance of Next Home.
• Must be first-time homebuyer
• DPA 3% (Conventional) and 4% (FHA)
• Homeowners receive a dollar-for-dollar tax credit on their federal income tax