Future Homebuyers > Tax Credits

Homebuyer Tax Credit Program No Longer Available

Funds for the Mortgage Credit Certificate (MCC) have been depleted. As of March 18, 2024, the program is no longer available for new loans.

Home Buyer Tax Credit

What would you do with a bigger tax refund?

If you plan on buying a home, then consider taking advantage of KHC’s Home Buyer Tax Credit. The tax credit provides a dollar for dollar reduction of your federal income taxes, every year you occupy the home. The Tax Credit is equal up to 20 percent of the annual mortgage interest paid in a calendar year.


  • All first-time home buyers. If not a first-time home buyer then contact a KHC Approved Lender to see if eligible.​
  • Purchase price and income limits apply.​

How to Apply?

Contact a KHC Tax ​Credit Approved Lender to start the process.

Applications are accepted by a statewide network of local lenders. Home Buyer Tax Credit is available through FHA, VA, RHS and Fannie Mae, and Freddie Mac Conventional 30-year mortgages at a fixed interest rate. With a Tax Credit from KHC, you will get a direct dollar-for-dollar reduction in your federal income taxes worth 20 percent of the mortgage interest you pay on your mortgage each year. You can still claim the remaining 80 percent of the mortgage interest as a tax deduction.​


We've compiled a list of frequently asked questions (FAQs)​ to answer most of your concerns, but if you would like to know more about the Tax Credit, please consult​ a Tax Credit Approved Lender and/or a tax professional.​​​

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For more information, please contact:

Kentucky Housing Corporation
1231 Louisville Road, Frankfort, KY 40601
502-564-7630; 800-633-8896 (KY only); TTY 711
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