Various versions of the tax reform bill canceled a little known but useful program that helped many people qualify for a larger mortgage. The good news is that in the final version of the tax reform act The Mortgage Credit Certificate program was saved.
The Mortgage Credit Certificate Program was authorized by Congress in the 1984 Tax Reform Act as a means of providing housing assistance to families of low and moderate income.
The Mortgage Credit Certificate (MCC) reduces the amount of federal income tax you would pay, thus giving you more available income to qualify for a mortgage loan and assist you with house payments. MCC is available to homebuyers who meet household income and home purchase price limits established for the MCC Program, as well as other federal eligibility regulations.