Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities

TDHCA Offering Tax Credit Program to Assist Texas Homebuyers

TDHCA is introducing a new Texas Mortgage Credit Certificate (MCC) Program aimed at helping very low to moderate income individuals and families purchasing their first home. Eligible households will receive a tax credit to create additional income for the home purchase, income that otherwise would be used to pay federal income taxes. The Department is making $15 million available through its MCC Program, which TDHCA expects to assist approximately 455 borrowers.

While Texans can apply for this certificate program as soon as December 17, TDHCA cannot issue any certificates until February 26, 2004, due to Internal Revenue Service rules.

The MCC Program will increase a household’s disposable income by reducing its federal income tax obligation. A reduced tax burden will free up more income to help households qualify for a mortgage loan and meet loan payment requirements. Homebuyers must meet certain eligibility requirements to participate in the program and obtain a qualified mortgage loan through a participating lender.

For further information regarding this new MCC Program, please contact Sue Wash Cavazos, Manager, Loan Closing and Bond Administration in TDHCA’s Texas Homeownership Division. Ms. Cavazos may be reached at (512) 475-3962 or via email at: sue.wash@tdhca.state.tx.us.