Galveston County MCC Programs

Down Payment Assistance


Galveston County MCC

Location Served: Galveston County, TX

Provider: Texas Department of Housing and Community Affairs

To inquire if New American Funding is currently an approved lender for this DPA program, please call (512) 524-8077. This webpage is for information purposes only.


The Mortgage Credit Certificate (MCC) Program was created by the Texas Department of Housing and Community Affairs in order to assist low to moderate income families in purchasing a home, especially those that are first time homebuyers.

What is a Mortgage Credit Certificate?

With a Mortgage Credit Certificate, homebuyers can claim a tax credit for a portion of their paid annual mortgage interest. It is a dollar for dollar reducation against their federal tax liability.
Note: Because the Mortgage Interest Credit (MIC) is a non-refundable tax credit, the homebuyer MUST have tax liability to benefit from the tax credit.

Who is eligible to receive an MCC?
Texas Veteran’s Mortgage Credit Program
How much of a tax credit can be issued under the MCC program?


MCCs are issued directly to qualifying Applicants who are then able each year to take a tax credit equal to a specified percentage of the interest paid on their mortgage not to exceed $2,000. The Mortgage Credit Certificate Rate is 35 percent. Thus, an Applicant with a $121,000.00 mortgage (30 year fixed with equal monthly installments of principal and interest) would realize the following savings:

MCC Example


Mortgage Amount Interest Rate Total Interest Paid First year Mortgage Credit Certificate Rate Tax Credit Amount:
$135,000.00 4.35% $5,872.50 X .35 $2,055.37
$2,000 (max)

During the first year of the Program, this Applicant would be entitled to a tax credit of $2,000.00. Based upon such entitlement, he or she would be able to file in advance a revised W-4 withholding form taking into consideration this tax credit and have approximately $167.00 per month in additional disposable income. Additionally, taxpayers who file itemized returns may take a deduction for their mortgage interest paid each year, less an amount equal to the tax credit taken. (In the above example, the additional interest deduction would be $5,872.50.00 less $2,000.00, or $3,872.50)

MCC Program Criteria / Requirements
Tax Credit versus Tax Deduction:
Length of Benefit
Targeted Areas:
Homebuyer Education Requirement:
Other Costs/Fees
I was issued an MCC by TDHCA; can I refinance my mortgage loan?
What happens if I lose or misplace my MCC?

This website marketing is not intended to offer loan services for properties in New York.