Finance
Pennsylvania's PHFA 'Mortgage Credit Certificate' (MCC) program provides qualifying first-time homebuyers with:
AA direct grant toward closing costs
BA federal tax credit equal to a percentage of mortgage interest paid annually✓ Correct
CA subsidized below-market interest rate
DWaived mortgage insurance premiums
Explanation
The MCC program allows qualifying first-time Pennsylvania homebuyers to claim a federal tax credit for a percentage of their mortgage interest each year. This directly reduces their federal income tax liability. The credit rate (typically 20-50%) is applied to the annual mortgage interest paid, providing ongoing tax savings.
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