Denton County MCC
Down Payment Assistance
Denton County MCC
Location Served: Denton County, Texas
Provider: The Pentagon Federal Credit Union Foundation
Approved Lender: New American Funding – (512) 524-8077
What is an MCC?
The Mortgage Credit Certificate Program, or MCC Program, is a federal income tax credit program. An MCC allows the homeowner to receive a federal income tax credit equivalent to 35% of their annual mortgage interest paid. The Mortgage Credit Certificate reduces first time homebuyers’ federal income taxes, thus increasing their net earnings, making it easier to qualify for their first home mortgage. The MCC is registered with the IRS, and continues to decrease the homeowner’s federal income taxes each year for as long as they owe amounts on their home mortgage. To benefit from the annual credit awarded each year, homeowners must have a tax liability.
How to Qualify
- To qualify for the Denton County MCC Program, the homebuyer’s household income and the purchase price must not exceed the limits shown below.
- The applicant must be a first time homebuyer or has not owned a principal residence in the past three years. Applicants purchasing a residence in a Targeted Area or those who are Qualified Veterans are exempt from this requirement.
- The homebuyer must occupy the home as their principal / primary residence.
- To apply for the Denton County’s MCC Program, participants must go through a participating Lender and pay a non-refundable MCC Application Fee.
- The applicant must purchase a home within the Denton County Eligible Loan Area.
MCC Program Limits Maximum Income:
1 or 2 persons: $70,100
3 + persons: $80,615
Maximum Purchase Price:
New & Existing: $250,200
Eligible Loan Area
Denton County, Texas
Targeted Census Tracts
Certain census tracts are designated as areas of chronic economic distress, or “Targeted Areas”. Applicants who purchase homes in Targeted Areas do not have to meet the first- time homebuyer requirement. There are no Targeted Area Census Tracts located in the Denton County Eligible Loan Area.
You may have to pay a recapture tax if you sell your home within nine years. Several conditions can exempt you from the recapture tax. Call the Program Administrator or see your Lender for more details.
Availability of Funds
Funds are currently available on a first-come first-served basis. If funds run out, it will be posted on the Program Administrator’s website.
How To Apply
- First, choose a Lender participating in the Denton County MCC Program to pre-qualify you for a loan and an MCC. See Lender list on the Program Administrator’s website: www.FSCHousing.com.
- Next, find a property. After the seller accepts your offer, the escrow will be opened. You may apply for an MCC only while escrow is open, NOT after your escrow has closed.
- Read and sign your MCC Application and Affidavit and other documentation that the Lender prepares and sends to the Program Administrator.
- The Program Administrator will issue your Lender the MCC Commitment and the MCC Closing Affidavit once your MCC application is approved.
- At the end of escrow, sign the MCC Closing Affidavit with the other closing documents.
- Finally, your MCC document will arrive in the mail within 30 days after escrow closing.
The Program does not place restrictions on the mortgage financing with regard to type, term or rate, except to require that the mortgage be a primary mortgage and to disallow refinancings unless issued to replace a construction period loan or bridge loan of a temporary nature. Also, no mortgages made from the proceeds of tax- exempt obligations are allowed.
MCC Application Fee: $100
MCC Closing Package Review Fee: $250
MCC Issuance Fee: 1.00% of the mortgage loan amount
The corporate check for the above fees should be made payable to “First Southwest Company.”
First Southwest Company administers the Program for the Denton County Housing Finance Corporation and may be contacted at (214) 953-4122.
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.