February 10, 2023 | by Michael Wilt
Categories: First Time Buyer, Homeownership, Savings
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 nearly three years since the COVID-19 pandemic began spreading across the U.S., and many Texans continue to feel the effects of the virus' impact on inflation, the economy, and their household income. Given the current financial uncertainty, 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 receive on their income taxes.
The MCC is a dollar-for-dollar federal income tax credit equal to 20% of the interest a homeowner pays on their mortgage loan. Because the MCC refunds a portion of the mortgage interest, it also helps soften the blow of higher mortgage interest rates.
It gets better. Homeowners can take advantage of the MCC credit on their federal income taxes each year they occupy the home as their principal residence, which means every tax season will be a reason to celebrate.
TSAHC has assisted thousands of Texans through our MCC Program. Those first-time home buyers have a reason to share our love for tax season because they can save money year after year on their income taxes.
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 and those living in certain targeted areas are exempt from the first-time home buyer requirement. Take the eligibility quiz to see if you qualify and find a participating lender in your county.
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 combine an MCC with any fixed rate mortgage loan.
There are only two other requirements: 1) the home must meet certain sales price requirements, and 2) home buyers need to apply for an MCC when purchasing their home. Home buyers that close on a home without an MCC cannot 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 home buyers can save money towards their future financial goals.
Do you wish you had all this information about MCCs, wrapped into a quick and convenient video? Click below to grant your wish!
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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