For First Time Home Buyers in the Dallas Fort Worth Metroplex and throughout the state of Texas, one of the best options to save money on a new home purchase is to take advantage of a the Mortgage Credit Certificate program (aka MCC). MCC Programs are available throughout Texas through State or Local Housing Finance Corporations.
**MCC is the program that keeps giving – Each year, you’ll receive a Tax Credit back (up to $2000 per year) as long as you’re paying the mortgage and meet the few requirements. Email email@example.com to prequalify for a mortgage and take advantage of the MCC program anywhere in Texas.
Two Main Benefits to the Homebuyer in the Dallas area or anywhere in Texas:
1. Provides a non-refundable tax credit up to $2,000 a year as long as the homebuyer occupies the home and has a mortgage. Calculated by taking the annual interest on the mortgage loan multiplied by the mortgage credit rate of 35%. For example, on a $120,000 loan at a 5.00% interest rate, the annual interest is approximately $6,000. An MCC tax credit of 35% of the interest paid would equal $2,100. (35% x $6,000 = $2,100). However, the maximum annual credit allowable is $2,000. The homebuyer must have tax liability to benefit from the annual credit in any given year.
2. Can help qualify the homebuyer. For Fannie Mae, Freddie Mac and USDA-RHS, you can increase the homebuyers income by the tax credit amount. For FHA and VA, you can reduce the monthly payment by the tax credit amount. This results in increased buyer capacity to qualify for the mortgage loan. (Maximum Tax Credit Amount of $2,000/12 = $166.67)
MCC programs are considered a Market Rate Program which means that the rate, term and type determined by the lender. Also, the process of qualifying is much more simplified than other First Time Home Buyer Programs becuase the process is normal underwriting.
Email questions to firstname.lastname@example.org or call Josh at 972-904-3694 to get started and pre-qualify today!
How a Homebuyer Qualifies:
- Homebuyer must purchase a home within the Eligible Loan Area.
- Homebuyer could not have owned a home in the last three years as their primary residence unless purchasing a home in a Targeted Area or the homebuyer is a Qualified Veteran.
- Homebuyer’s household income and the purchase price must not exceed the maximum limits set by the Program.
- Homebuyer must occupy the home as their principal residence.
- Homebuyer must apply for the MCC through a participating lender.
Cost for the MCC varies by program. The fees can be paid by buyer, seller or lender. Email email@example.com for details.
Can be utilized with city and/or county DPA (Down Payment Assistance) programs. Email firstname.lastname@example.org for details or to prequalify today.