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The Texas Department of Housing and Community Affairs created its Texas Mortgage Credit Program for the residents of Texas, to help make ownership of new and existing homes more affordable for individuals and families of low and moderate income, especially first time buyers.
What is a Mortgage Credit Certificate?
A Mortgage Credit Certificate allows the homebuyer to claim a tax credit for some portion of the mortgage interest paid per year. It is a dollar for dollar reduction against their federal tax liability.
Other Important Notes on the MCC Program
- Save up to $2,000 a year for the life of your loan.
- You'll save $60,000 during the course of a 30 year loan.
- Individuals who have not owned a home in the past three years are eligible.
- In a declared disaster area, the first time homebuyer requirement is waived; and there are increased income and purchase price limits.
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Calculate how much you can save.
| Loan Amount |
$120,000 |
| Times Loan Interest Rate |
x 5% |
| Approximate Annual Interest |
$6,000 |
| Times MCC Credit Rate |
x 30% |
| Approximate Annual MCC Savings* |
$1,800 |
Note incoming guidelines below. Income limits applicable through 12/31/10.
Income limits for Harris County
| Size of Family |
Area Income |
| 1-2 Family Members |
$78,120 |
| 3+ Family Members |
$91,140 |
Criteria/Requirements
All mortgage loan types are eligible. The mortgage loan must be underwritten according to FHA, VA, USDA or conventional loan criteria and the rate will align with current market rates. New and existing single family homes, townhouses, condominiums and manufactured housing (with certain restrictions) are eligible properties. There are purchase price and income limits, which are adjusted by household size. The homeowner must occupy the property as their principal residence.
For more information contact Compass Pointe Homes.
*Federal guidelines limit savings at a maximum
$2,000 per year.
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*Tax credit not applicable to homebuyers in all communities.
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