$2,000 Tax Credit

For a first time homeowner through PHFA, you could earn up to $60,000 in tax credits over the course of a 30-year mortgage. A PHFA Mortgage Credit Certificate (MCC) allows homebuyers to claim a tax credit for 50 percent (50%) of the mortgage interest paid per year, capped at $2,000 annually. It is a dollar-for-dollar reduction against your federal tax liability. That means you reduce your tax bill by up to $2,000 every year for the life of a 30-year loan.

The credit is available to qualified homebuyers in conjunction with the following PHFA first mortgage home purchase loan programs:

The credit may also be combined with a Keystone Advantage Assistance loan. Due to the source of funds, an MCC cannot be used in conjunction with the Keystone Home loan. To find out more information about these programs, please visit the PHFA site.


Mortgage amount: $100,000
Mortgage Interest Rate: 3.75%
MCC percentage* 50%
Tax credit amount $1,875

*subject to change periodically

Up to 50% of the annual interest paid may be taken as an annual tax credit for the life of the loan. Find out more through PHFA.

Veterans Corner

Liberty Mortgage leads the state in loans to veterans. Before you proceed with any other type of financing, find out if you are eligible for a cost-saving VA Loan. learn more