source:
  type: guide
  id: fnma-sel-b3-3.4-10
  authority: Fannie Mae Selling Guide B3-3.4-10 — Mortgage Credit Certificates
  description: Fannie Mae Selling Guide B3-3.4-10 — Mortgage Credit Certificates.
  coverage_tier: operative
obligations:
- id: fnma-sel-b3-3.4-10-full
  canonical_id: fnma-sel-b3-3.4-10-full
  section: Fannie Mae Selling Guide B3-3.4-10 — Mortgage Credit Certificates
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B3-3.4-10 — Mortgage Credit Certificates
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B3-3.4-10, Mortgage Credit Certiﬁcates (03/04/2026) States and
      municipalities can issue mortgage credit certiﬁcates (MCCs) in place of, or
      as part of, their authority to issue mortgage revenue bonds. MCCs enable an
      eligible ﬁrst-time homebuyer to obtain a mortgage secured by their principal
      residence and to claim a federal tax credit for a speciﬁed percentage (usually
      20% to 25%) of the mortgage interest payments. Criteria Requirements Documentation
      For purchase transactions, the lender must obtain: • a copy of the MCC, and
      • the lender''s documented calculation of the adjustment to the borrower''s
      income. For reﬁnance transactions, the lender must obtain: • conﬁrmation prior
      to loan closing from the MCC provider that the MCC remains in eﬀect for the
      new loan, and • copies of the MCC documents, including, the reissue certiﬁcation.
      Note: Because the MCC is transaction speciﬁc, it does not have to comply with
      the Allowable Age of Credit Documents policy (see B1-1-03, Allowable Age of
      Credit Documents and Federal Income Tax Returns, for additional information).
      Income History No minimum history is required. Income Continuance Lenders are
      not required to verify continuance unless they have reason to believe the income
      may not continue. Determination of Qualifying Income When calculating the borrower’s
      DTI ratio, treat the maximum possible MCC income as an addition to the borrower’s
      income, rather than as a reduction to the amount of the borrower’s mortgage
      payment. Use the following calculation when determining the available income:
      [(Mortgage Amount) x (Note Rate) x (MCC %)] ÷ 12 = Amount added to borrower’s
      monthly income. For example, if a borrower obtains a $100,000 mortgage that
      has a note rate of 7.5% and they are eligible for a 20% credit under the MCC
      program, the amount that should be added to their monthly income would be $125
      ($100,000 x 7.5% x 20% = $1500 ÷ 12 = $125). Published May 6, 2026 349 Recent
      Related Announcements The table below provides references to recently issued
      Announcements related to this topic. Announcements Issue Date Announcement SEL-2026-02
      March 04, 2026'
  judgment: false
