Galveston County MCC Programs

Down Payment Assistance


Galveston County MCC

Location Served: Galveston County, TX

Provider: Texas Department of Housing and Community Affairs

Approved Lender: New American Funding – (512) 524-8077


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.