Dallas Mortgage Credit Certificate Program
Down Payment Assistance
City of Dallas MCC Program
Location Served: Dallas, TX
Provider: City of Dallas Housing Finance Corporation
Approved Lender: New American Funding
Two Main Benefits of the Dallas Mortgage Credit Certificate Program:
- A Mortgage Credit Certificate provides homebuyers with a tax credit up to $2,000 each year the homebuyer occupies the home as their primary residence. The tax credit is calculated by multiplying the annual interest paid by the mortgage credit rate of 35 percent. For example, if a homebuyer has a $120,000 loan at a 6.00% interest rate, the annual interest paid on the home loan would equal roughly $7,200. If this particular homebuyer received a 35 percent tax credit of the $7,200 interest paid amount, their Mortgage Credit Certificate would equal $2,520. However, through this program, homebuyers may only receive up to $2,000.
- A Mortgage Credit Certificate can also help the homebuyer qualify for a mortgage. For Fannie Mae, Freddie Mac and USDA-RHS, the homebuyer’s income will increase the same amount as the tax credit. For FHA home loans, the homebuyer’s monthly payment can be reduced by the tax credit amount. Both of these situations increase the buyer’s ability to qualify for a mortgage loan. Unfortunately, there is no additional benefits with VA loans.
- Purchase a home within the City of Dallas, Texas.
- Not have owned a home in the last three years as their primary residence unless purchasing a home in a Targeted Area* or is a Qualified Veteran.
- Homebuyer’s household income must not exceed the maximum limits* set by the Program below:
- $67,600 for 1 – 2 occupants
- $77,740 for 3 or more occupants
- The purchase price of the home may not exceed $258,691*.
- Use the home as their principal / primary residence.
- Apply for the Mortgage Credit Certificate through a participating lender.
- Pay $100 for MCC Application Fee, $250 for the Closing Package Review Fee and 1.00% MCC Issuance Fee. The fees can be paid by buyer, seller, lender, rolled into the loan.
- This program can be stacked with city and/or county DPA programs
- Homes under a binding contract by April 30, 2010, may combine the MCC with the $8,000 Federal Home Buyer Tax Credit.