Mortgage Credit Certificate Programs (MCC)
Mortgage Credit Certificates (MCC) are a great opportunity for first-time homebuyers. A first time homebuyer is considered to be a borrower who has not owned a home in the last 3 years. This Program offers borrowers annual federal income tax credits of up to $2,000 per year for the life of their mortgage.
Tax Credit versus Tax Deduction: A mortgage interest deduction differs from a mortgage tax credit. For example, all homebuyers, regardless of income, may take a mortgage interest deduction, whereas mortgage tax credits are available only to holders of MCCs.
Borrowers who are interested in this program have to apply with a participating MCC mortgage lender in conjunction with their normal mortgage loan application.
We are on the participating lender list for three MCC programs in the state of Texas. Over the last 7 years we have been able to help hundreds of borrowers qualify for the MCC Program. Call us today to see how we can help you to determine if you are eligible for this program.
To see an example of how this program can help save you money click here.
Texas Department of Housing & Community Affairs- Link to website
The amount of the annual federal income tax credit is 30%.
- The home being purchased must be located within the state of Texas.
- The price of the home may not exceed $258,690.
- Both newly constructed and existing resale homes are eligible.
- The Borrower must be a first time homebuyer or not have owned a primary residence in the past three years.
- A borrower's current gross annual household income must not exceed the following amount:
Families of 1 or 2: Non-targeted Area $73,300
Families of 3 or more: Non-targeted Area $84,295
- Borrowers must complete a 1st Time Homebuyers course. We have an an online class available to borrowers at no charge - visit link.
- Other Costs/Fees: In addition to the regular closing costs associated with the loan, upon closing, a MCC Issuance Fee of 1% of the loan amount and a $75 processing fee.
* Based upon income and purchase limits for Austin-Round Rock MSA. For information on the income and purchase limits for other areas click here.
Texas State Affordable Housing Corporation - link to website
The amount of the annual federal income tax credit is 35%.
- The home being purchased must be located within the state of Texas.
- The price of the home may not exceed $258,690.
- Both newly constructed and existing resale homes are eligible.
- The Borrower must be a first time homebuyer or not have owned a primary residence in the past three years.
- A borrower's current gross annual household income must not exceed the following amount:
Families of 1 or 2: Non-targeted Area $56,200*
Families of 3 or more: Non-targeted Area $64,630*
Other Costs/Fees: In addition to the regular closing costs associated with the loan, an application fee $100, and upon closing, a MCC Issuance Fee of 1% of the loan amount and a $250 Closing Package Review Fee.
* Based upon income and purchase limits for Austin-Round Rock MSA. For information on the income and purchase limits for other areas click here.
City of Austin Program - www.ci.austin.tx.us/ahfc
THIS PROGRAM IS CURRENTLY OUT OF FUNDS
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