February 5, 2021 | by Michael Wilt
Categories: First Time Buyer, Homeownership
This blog post was originally published on February 17, 2017. We update and publish it annually to let everyone to know about the benefits of Mortgage Credit Certificates.
It's been roughly a year since the COVID-19 pandemic began spreading across the U.S., and many Texans still continue to feel the effects of the virus' impact on the economy and their household income. Given the financial uncertainty that lingers, saving money during tax season is more important than ever.
Because of this, we want to remind home buyers about our Mortgage Credit Certificate (MCC) Program and the immense savings they could see in their future.
The 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 can save money towards their future financial goals.
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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