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California Down Payment Assistance Programs

Helping Families Realize The Dream Of Homeownership Since 1990

NOT a government website

Mortgage Credit Certificate

The Mortgage Credit Certificate (MCC) is an IRS tax credit that can reduce a homeowner's  tax liability on their federal return.


is this program for?


does the program work?


properties are eligible?


else do I need to know?


do I apply??


is this program for?

This program is for First Time Homebuyers with a household income that does not exceed the program income limits. The applicants and ALL household members over the age of 18 must be first time homebuyers.


A first time homebuyer is defined as someone who has not had ownership of any real estate in the previous 36 months.

A displaced homemaker and a single parent who owned a home with his or her spouse while married may be exempt for the 36 month rule.


The first time homebuyer requirement is waived for home in  targeted neighborhoods.


The income limits for this program can be Found on the INCOME LIMITS PAGE



does the program work?

The program gives homeowners a tax credit equal to 20% of the annual interest paid on the mortgage loan.  The remaining 80% of the mortgage interest paid would continue to be an itemized deduction.


mortgage interest deduction

is one of the benefits of homeownership.  Most often, the interest and

property tax deduction

allows you to reduce your taxable income in comparison to taking the standard deduction"


Example: (interest rates and property tax rates are for illustration purposes only. They do not necessarily reflect actual rates. Tax assumptions are for illustration purposes as well.

We are not tax advisors.  Contact your tax accountant or the IRS for guidance.


You and your spouse file a joint tax return

Your Adjusted Gross income   $58800

Federal Income tax withheld   $9150

Property Taxes paid $4,646      Interest Paid  $12928

With the standard deduction:

With interest and property tax deduction:


With MCC credit of $2585


Gross income



Taxable Income

Tax Liability


Tax Refund























(after MCC credit



You could adjust your W-4 withholdings to benefit on a monthly basis rather than by waiting for the tax refund at the end of the year.

Due to recent federal tax changes, CalHFA 1st lien programs will not use the MCC program benefit to assist in qualifying. The buyer can still apply for the MCC and receive potential tax benefits.


properties are eligible?

  • Single family homes, town homes and condominiums .  Duplexes and two-on-one units are NOT eligible.

Due to recent federal tax changes, CalHFA  has suspended their MCC program which will affect properties located in unincorporated areas of specific counties. Please check THIS list to see if your county is affected


Homes located within certain Census tracts are considered to be in targeted neighborhoods and will have no First Time Homebuyer requirement.  To confirm that the home is located within a targeted census tract, contact me directly OR  input  the property address HERE and compare the census tract number to the ones found HERE.

General Area

Normal Heights

Loma Portal

52 Freeway Area

Kearney Mesa/Clairemont Area

Miramar Area

City Heights/East San Diego

East San Diego

Black Mountain Area

Southeast San Diego

Southeast San Diego

Logan Heights

Barrio Logan


South San Diego/San Ysidro



else do I need to know?

As already mentioned, these guidelines are not the complete set of eligibility and qualification requirements but rather an over view.


  • The program can be used with FHA, VA and conventional loans with fixed or adjustable rates
  • Home must be purchased as a primary residence
  • Homebuyers who sell their home within 9 years may be subject to recapture of a portion of the tax benefit.  More information can be found in this IRS publication.
  • There is a fee for applying to the program.  The amount varies depending on the location of the property and the agency that is managing the program.  For more information contact me ME directly


do I apply??


Applications are made through an approved participating lender

Laura Borja with Supreme Lending is an approved participating lender






Download the application worksheet


(866) 765-3804

To schedule an appointment


(619) 992-4061


Schedule Online


Download the application checklist

California Down Payment Assistance Programs




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1615 Murray Canyon Rd Ste 1020

San Diego CA 92108

Bilingual Loan Officer In San Diego