Mortgage Credit Certificate Program

TSAHC's Mortgage Credit Certificate (MCC) Program is available to teachers, fire fighters, peace officers, veterans, and low and moderate-income homebuyers.  This program is available through a network of lenders across the state and provides the following benefits:

  • A dollar for dollar savings of up to $2,000 every year as a special tax credit
  • Saves the homebuyer thousands of dollars over the life of the loan
  • Exclusively for first-time homebuyers or individuals who have not owned a home in the last three years
  • Can be used with TSAHC’s Down Payment Assistance

The example below assumes a family purchases a home for $120,000 at a 4.75% interest rate.  Interest paid the first year is approximately $5,700.  An MCC tax credit of 40% of the interest paid would equal $2,280 (40% x $5,700 = $2,280).

Mortgage Amount $120,000
Interest Amount 4.75%
Interest Paid $5,700
MCC Rate 40%
Tax Credit $2,000

In this example, the homebuyer would be entitled to a tax credit of the maximum $2,000.00. 

It is also important to note that the homebuyer will still be able to take a mortgage interest deduction of $3,700.

  • Tax Credit = A $2,000 tax credit reduces your taxes owed dollar-for-dollar by $2,000
  • Tax Deduction  =  A reduction of your taxable income by $3,700 ($5,700 - $2,000 credit)

take the eligibility quiz