Capital Area Housing Finance Corporation
Down Payment Assistance
With the help of the Capital Area Housing Finance Corporation, qualified borrowers are allowed to use a one-time $8,000 federal income tax credit as well as the Capital Area HFC mortgage credit referred to as an MCC. The mortgage credit certificate, or MCC, provides homebuyers the opportunity to take 30 percent (or up to $2,000) off of their annual mortgage interest as a federal income tax credit. Any unused credit may be carried forward up to three years because the credit is limited to the homeowner’s actual tax liability. The leftover percentage of the homebuyer’s annual mortgage interest may continue to be claimed as a deduction.
- As long as the property remains as the borrower’s primary / principal residence, the MCC benefit may be claimed each year of the mortgage term.
- The MCC credit could help homebuyers meet the requirements during the credit underwriting process.
- Homeowners have the option to change their federal income tax withholding and increase their monthly take home pay, or homeowners may receive the credit as a lump sum when they file their annual federal income tax return.
In order to qualify for the Capital Area Housing Finance Corporation, homebuyers:
- Must not have owned a primary residence in the past three years
- Must not exceed the following income limits:
- Must not purchase a home that exceeds the price of $258,690
|Counties||1-2 person households||3 or more person households|
|Bastrop, Caldwell, Hays, Williamson||$73,300||$84,295|
Fees associated with the MCC program include the normal, reasonable and customary closing costs, a 0.75% fee to Capital Area HFC, $270 to the Program Administrator, and up to $75 for the lender.
Everyone listed on the Deed / Mortgage is required to attend a Homebuyer Education Course before the closing date. Homebuyers may attend either the Frameworks or Business and Community Lenders of Texas (BCL) Program. Frameworks offers face-to-face training, while BCL offers both face-to-face training and online training. Homebuyers may choose their type of training.
If you have any additional questions regarding home mortgages, please contact a mortgage expert by filling out the form on the right or calling (512) 524-8077. You can also email Team@CandyBuzan.com.