MONTGOMERY — The Alabama Housing Finance Authority (AHFA) has opened its popular Mortgage Credit Certificate (MCC) program to more Baldwin County homebuyers, thanks to newly increased income and sales price limits.

The U.S. Department of Housing and Urban Development has set the new income limits, which have increased by up to 8.8 percent compared to the 2022 figures. These changes reflect the area’s rising media income and economic growth. Qualified households in Baldwin County now can earn up to $119,400 annually, depending on the home’s location and family size.

The updated income and sales price limits are beneficial for participants in the MCC program, which is exclusively available to Alabama homebuyers through AHFA. The MCC gives homebuyers an annual credit to reduce federal income tax. The credit is equal to a percentage of mortgage interest paid throughout the loan’s duration. Additionally, the remaining annual interest can still be claimed as a mortgage interest deduction on the homebuyer's federal tax return.

Designed to make homeownership more affordable, the program is not as complicated as it sounds, said AHFA Single-Family Administrator Carrie Hamaker.

“Taking advantage of the MCC can save homebuyers hundreds of dollars per month, and literally thousands of dollars on their tax bills each year. That savings frees up income so they can qualify for a nicer home,” said Hamaker. “More than 4,000 Alabama households have already used this federal incentive to boost their purchasing power.”

The maximum sales price for the home purchase has also increased to $588,104 in “target” areas and $481,176 in “non-target” areas. The federal government designates these areas to promote economic development. AHFA will verify each property’s location and apply the appropriate limit on an individual basis.

MCCs may be combined with up to $10,000 in AHFA-administered Step Up down payment assistance or any other 30-year, fixed-rate, amortizing conventional, FHA, VA, Rural Development or privately insured mortgage. Applications are accepted on a first-come, first-served basis by a statewide network of more than 60 participating lenders.

Other parts of the state, both rural and urban, have their own income limits based on each area’s median income. Visit ahfa.com/homebuyers/programs-available/mccs/income-limits for a complete listing.

For more information, call AHFA at (800) 325-2432 or visit ahfa.com/homebuyers.