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 two 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 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. Click here to take our eligibility quiz.
Also, please note that while we require home buyers using our down payment assistance to have a 620 FICO score, there is no minimum credit score requirement to obtain an MCC. You can also obtain a stand-alone MCC without using our down payment assistance programs.
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.
resources for homeowners who already have an mcc
We get numerous requests from homeowners looking for a copy of their MCC during tax season. That's why we created a web page that provides answers to common homeowner inquiries. Included among them is how to obtain a copy of your MCC or get an MCC reissued if you refinance your mortgage.
MCC RESOUrces for lenders
For lenders, please note two important MCC reminders during tax time. First, if a borrower contacts you asking for a copy of their MCC, please follow these instructions on how to obtain a copy from our lender portal. There is an accompanying video to walk you through the steps.
Second, starting February 15th, home buyers applying for an MCC must submit their 2021 tax returns filed with the IRS. Please contact our homeownership team with any questions.
Whether you're a lender, a homeowner with an MCC, or a first-time home buyer, we hope you will help us spread the word about our MCC Program and its benefits so that more future home buyers can save money and achieve their 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.