What Would You Do with an Extra $2,000 Every Year?

June 2, 2017 | by Katie Claflin

Categories: Affordable Housing, First Time Buyer, Homeownership, Savings

June is National Homeownership Month, and we want to take this opportunity to educate first-time buyers about our Mortgage Credit Certificate (MCC) Program, which can save you up to $2,000 every year on your income taxes and put more of your hard-earned money back into your pocket.

Want to know more?  We’ve provided answers below to some of our most frequently asked questions.

  • What is an MCC?
    A Mortgage Credit Certificate, also known as an MCC, is a federal tax credit that reduces the amount of federal income tax paid by the homeowner. The tax credit is equal to 40% of the mortgage interest paid during the tax year, up to a maximum $2,000 per year.
     
  • What are the requirements?
    To qualify, you must meet certain income requirements and be a first-time home buyer (defined as anyone who has not owned a home in the past three years). Take the eligibility quiz to see if you meet the requirements.
     
  • How do I apply?
    You must work with one of TSAHC’s approved lenders. The lender will help you fill out the application and ensure that you meet all of the requirements. Click here to find a participating lender. 

    Please note that you must apply for the MCC BEFORE you close on your home loan. You cannot apply for the MCC after your loan has closed.
     
  • Can I combine an MCC with TSAHC's down payment assistance grants?
    Absolutely!  As long as you meet all of the requirements of both programs, you can use TSAHC’s MCC and down payment assistance together.

    Plus, if you qualify for our Homes for Texas Heroes Program, you can receive your MCC for FREE if you combine it with our down payment assistance grant.
So what would YOU do with an extra $2,000 every year?

Not only can that extra money help you build savings and pay down debt, but your lender can also count it as income when qualifying you for your mortgage. Below is a testimonial from Cody Velkovich at Nations Reliable Lending describing how TSAHC’s MCC program helped a teacher’s aide and her family close on their dream home.

“By applying for and including the MCC tax savings into the family’s income, we were able to drop their debt-to-income ratio, giving us an approvable loan and one happy family. On December 30, 2016, the family with their two young children became homeowners for the first time.”

The program may sound too good to be true, but we promise it's not! Click here to view our full list of Frequently Asked Questions. If you have any questions not listed in our FAQ, we encourage you to contact our homeownership team at 877-508-4611 or via email.


On the House blog posts are meant to provide general information on various housing-related issues, research and programs. We are not liable for any errors or inaccuracies in the information provided by blog sources. Furthermore, this blog is not legal advice and should not be used as a substitute for legal advice from a licensed professional attorney.

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