Mortgage credit certificate programs can provide substantial benefits to borrowers with a great deal of flexibility to lenders. A mortgage credit certificate provides a direct federal income tax subsidy to eligible home buyers. The issuer chooses the level of the tax credit from 10% - 50% of the interest paid on the mortgage. By combining a mortgage credit certificate first mortgage with a second mortgage to provide down payment assistance, issuers have a powerful tool to provide first-time home buyers with an extremely attractive financing package.