Available in most
counties in Texas through State or Local Housing Finance Corporations.
through First Southwest
♦ Two Main Benefits to the Homebuyer:
Provides a non-refundable tax credit up to $2,000 a year as long as the
homebuyer occupies the home and has a mortgage.
by taking the annual interest on the mortgage loan
multiplied by the
mortgage credit rate of 35%.
a $120,000 loan at a 5.00% interest you will be paying approximately
interest. With the MCC You will receive a tax
credit of 35% of the interest paid up to a maximum
of $2000. In this instance the 35% is $2100 and
all you will receive is the $2000 Maximum
homebuyer must have tax liability ( Owe Taxes) to benefit from the
annual credit in any given year.
The advantages of the
Can help qualify the homebuyer. For
Fannie Mae, Freddie Mac and USDA-RHS, you can increase the homebuyers
income by the tax credit amount. For FHA and VA, you can reduce the
monthly payment by the tax credit amount. This results in increased
buyer capacity to qualify for the mortgage loan.
Credit Amount of $2,000/12 = $166.67 per month)
♦ Market Rate Program.
Rate, term and type determined by the lender. Normal Underwriting.
♦ How a Homebuyer Qualifies:
must purchase a home within the Eligible Loan Area.
2) Homebuyer could not have owned a home
in the last three years as their primary residence
unless purchasing a home in a Targeted Area or the homebuyer is a
3) Homebuyer’s household income and the purchase price
must not exceed the maximum
limits set by the Program.
must occupy the home as their principal residence.
must apply for the MCC through a participating lender. (Chris Cook)
♦ 6) Cost for
the MCC varies by program. The fees can be paid by buyer, seller or
♦ 7) Can be
utilized with city and/or county DPA programs. (If allowed by that HAP
Examples of Household Income
Family of 2 Dallas,
Collin County $70200 Tarrant County $69800
Family of 3 or more in Dallas County $80615 Tarrant $79580
Please view Texas Income table