No, I don't know why someone suggested the MCC was only deductible against state taxes. In fact, I think it's only deductible against federal taxes. The catch is that if you refinance your loan, you lose the credit. It's a good deal if you qualify. It's ahrd because it has low income limits, or higher income limits in lower income parts of town. It varies by state of course. Also only some lenders are approved for the program, you may have higher closing costs.