This blog post was originally published on February 17, 2017. But because we still love tax season and want everyone to know about the benefits of Mortgage Credit Certificates, we felt this article was worthy of updating and reposting.
We know that most people dread doing their taxes and on top of that, it's Valentine's Day — a day you either love or hate. But we just can't hold it back any longer: We LOVE tax season!
That's right — tax season is our valentine this year, and we're not afraid to say it! After all, it gives us the perfect opportunity to remind homebuyers about our Mortgage Certificate Program and the immense savings they could see in their future.
The Mortgage Credit Certificate (MCC) is a dollar-for-dollar federal income tax credit equal to a percentage of the interest a homeowner pays on their mortgage loan. Homeowners with an MCC are eligible for a tax credit of up to 20% of the interest they pay on a mortgage each year.
TSAHC has assisted thousands of Texans through our MCC Program. Those home buyers have a reason to share our love for tax season because they can save thousands on their income taxes this year.
It gets better. Homeowners can take advantage of the MCC credit on their federal income taxes every year they occupy the home as their principal residence, which means every tax season will be a reason to celebrate.
Qualifying for an MCC is simple. Home buyers eligible for down payment assistance through one of home buyer programs are also eligible for the MCC Program so long as they are a first-time home buyer or have not owned a home in the last three years. Veterans are exempt from the first-time home buyer requirement.
Also, please note that while eligibility for our down payment assistance and MCC programs are the same, you don't have to use our down payment assistance to receive an MCC. You can claim a stand alone MCC.
The only other requirement is that home buyers apply for an MCC when purchasing a home. Home buyers that close on a home without an MCC can't retroactively apply for one.
That's why it's so important for us to highlight our MCC Program. Like down payment assistance, we worry that home buyers are losing out on thousands of dollars simply because they don't know programs like ours exist.
This tax season, we hope you will help us spread the word about our MCC Program so that more future home buyers have a reason to love tax filing time.
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.