The North Central Texas Housing Finance Corporation offers resources to help make the dream of homeownership a reality and more affordable.
The North Texas Housing Finance Corporation provides a Mortgage Credit Certificate Program (MCC Program) to eligible first time home buyers wishing to achieve homeownership through a network of participating lenders. A Mortgage Credit Certificate is a great tool for home buyers to reduce the cost of homeownership. Read below to learn more about the MCC Program or use the MCC Participating Lender List
to locate a lender who is currently participating in the program.
An MCC offers a tax credit up to $2,000 per year as long as the homebuyer occupies the home as their principal residence and have a mortgage. It is a dollar for dollar reduction against the home buyers federal tax liability. The portion or amount of the annual tax credit is equal to the annual interest paid on the mortgage loan multiplied by the mortgage credit rate of 35%. This credit increases the home buyers income resulting in increased buyer capacity to qualify for the mortgage loan. An MCC has the potential to save the home buyer thousands of dollars over the life of the loan.
A home buyer with a $120,000 mortgage (30 year fixed) would realize the following savings:
|Total Interest Paid First Year:
|Mortgage Credit Certificate Rate:
* The maximum credit that can be taken each year is $2,000.
During the first year, the home buyer would take a tax credit of $2,000. Based on the $2,000 tax credit, if the home buyer chooses, may file a revised W-4 withholding form taking in consideration this tax credit and have $166.67 per month in additional disposable income. To claim the tax credit, the home buyer will file IRS Form 8396 with their federal income tax return. The form can be found on the IRS website at www.irs.gov.
The MCC Program is open to those individuals and families who meet the following requirements:
- The home being purchased must be located within one of the following cities or counties:
- Texas Counties of Ellis, Hunt, Kaufman, Navarro, Rockwall and the
- Texas Cities of Cedar Hill, DeSoto, Duncanville, Lancaster and Waxahachie
- The price of the home may not exceed $237,031. Both newly constructed and existing homes are eligible.
- The borrower could not have owned a home in the last three year as their primary residence.
- A borrower's current gross annual income must not exceed the following:
||All Other Areas
|1 or 2 persons:
|3 + persons:
- Meet standard mortgage underwriting requirements which demonstrate credit worthiness.
- Occupy the purchased home as their primary residence.
Click here to view the MCC video explaining the benefits.
Click to view a copy of the MCC Brochure. You will need the free Adobe Acrobat Reader to access the MCC Brochure.
In addition to the regular closing costs associated with a loan, there is a $100 MCC Application Fee, $250 MCC Closing Package Review Fee and an MCC Issuance Fee of 1.00% of the loan amount. The MCC fees can be paid by the home buyer, the seller, the lender or any other person on the home buyers behalf. The MCC fees are paid upon closing.
The mortgage loan must be financed from sources other than tax exempt mortgage bonds or veterans' tax exempt revenue bonds. The mortgage may be FHA, VA, USDA-RHS, or conventional, at prevailing market rates. All loan terms are acceptable. The MCC may not be used in connection with the refinancing of an existing mortgage. Loans made under the MCC Program are subject to recapture tax provisions, under federal law. To find out more about the recapture tax provision, read the "Reality of Recapture" and "Recapture Tax Frequently Asked Questions".
If a home buyer meets the above Eligibility Requirements, the next step is to contact a Participating Lender. The MCC process is easy...click here to view a list of MCC Program Participating Lenders.
If a home buyer is purchasing a home outside the jurisdiction of the North Central Texas Housing Finance Corporation, other MCC Programs offered by Housing Finance Corporations may be available. Contact Mary Bert-Koelling at (214) 681-3311 or email@example.com concerning other available programs.
Lenders who are interested in participating in the MCC Program should contact the Program Administrator, Sharon Gonzalez, (214) 953-4122 or firstname.lastname@example.org for more information. The process to become a participating lender is quick and easy.
The North Texas Housing Finance Corporation currently does not offer a Single Family Bond Program with Down Payment and Closing Cost Assistance.
Please check back for updates or contact Sharon Gonzalez, (214) 953-4122 or email@example.com.
If a home buyer is purchasing a home outside the jurisdiction of the North Central Texas Housing Finance Corporation, other Single Family Bond Programs offered by Housing Finance Corporations may be available. Contact Mary Bert-Koelling at (214) 681-3311 or firstname.lastname@example.org concerning other available programs.