The Texas Mortgage Credit Certificate Program (MCC) is a tax credit that reduces the federal income taxes of qualified buyers buying a qualified residence. A Mortgage Credit Certificate (an “MCC”) is an instrument to assist persons of low and moderate income to better afford individual ownership of housing. It allows the homebuyer to claim a tax credit for some portion of the mortgage interest paid per year.
The procedures for issuing MCCs were established as an alternative to the issuance of single-family mortgage revenue bonds. As distinguished from a bond program, in an MCC program no bonds are issued and mortgages are financed in the conventional or government-insured market. However, the mortgagor may take a tax credit in an amount equal to the annual amount of interest paid on the mortgage loan multiplied by the Mortgage Credit Certificate Rate. The Mortgage Credit Certificate Rate for the program is 35 percent (35%). A purchaser of a new or existing single-family home may apply for an MCC through any mortgage lender at the time they apply for a mortgage loan. An MCC cannot be issued to a homeowner who is refinancing an existing mortgage (except an interim construction loan) or in connection with a mortgage from a relative. Also, an MCC cannot be used in connection with a bond-financed mortgage loan.
To qualify, there are limits on the maximum income and maximum purchase price of the home to obtain a Mortgage Credit Certificate:
Maximum Income Limits
Number of Family Members
Maximum Non-Targeted Area Income
Maximum Targeted Area Income
Maximum Purchase Price Limits
Mortgage Lending Texas is a participating lender that offers MCC through both Harris County Housing Finance Corporation and Texas Department of Housing and Community Affairs. For additional information about qualification requirements and guidelines, please contact our Home Loan Specialist at (866) 717-9695 or use the tools on this site.