MCC Program Updates

The HHFDC just updated their income limits and purchase price limits for the MCC program, effective Monday, April 22, 2019. Attached is the Acquisition Cost Limits document and updated MCC Program Brochure.

For those of you who aren’t familiar with the MCC program, an MCC gives a qualified first-time homebuyer (no primary residence ownership in the last 3 years) a tax credit of 20% of the mortgage interest paid each year. At current rates, that effectively saves them almost 1% on their interest rate.  It also can improve their pre-approval buying power by enough to make the difference between qualifying and not qualifying for a purchase.

A tax credit is much better than a tax deduction, as it reduces your tax liability dollar for dollar. The remaining 80% of your annual mortgage interest continues to qualify as an itemized tax deduction.

For properties on Oahu, the new income limits are up to $139,520 for a family of 2 or less, and $163,240 for a family of 3 or more, while the new purchase price limit is $648,955 in non-targeted areas.

There are certain census tracts, or targeted areas, where the HHFDC has a different income limit (need to contact them for the limit for each area) and an increased purchase price limit of $793,168.

The acquisition cost (purchase price) limits applicable to the MCC Program are as follows:

Non-Targeted Areas

County Newly Constructed or Existing Residence*
Hawaii $348,800
Honolulu $648,955
Kalawao $610,659
Kauai $641,710
Maui $610,659

Targeted Areas

County Newly Constructed or Existing Residence*
Hawaii $426,311
Honolulu $793,168
Kalawao $746,362
Kauai $784,313
Maui $746,362

* Pursuant to federal regulations, there is only one purchase price limit that applies to both newly constructed and existing residences.

About the Author

Brandon Lau grew up in Kailua and currently resides in Honolulu with his wife Andee and children Caylah, Elijah, and David. His eighteen years in real estate led him to become a Partner at ChaneyBrooks Choice Advisors. Over the past 10 years he has developed the team and systems that has created a high level of service and value for his clients.

What differentiates Brandon and his team is his consultative approach to real estate. He advises clients with relevant data and expert insight to help them make the best choices in real estate. Good choices in planning for long term dispositions, negotiating for the best price or knowing when not to pursue an investment are ways his consultative services will give you an advantage in the marketplace. His bottom line is providing service with the utmost integrity and expertise.