Northwest Central Texas MCC
Down Payment Assistance
Eligible first-time homebuyers can participate in the Mortgage Credit Certificate Program (MCC Program) provided by The North Texas Housing Finance Corporation. This program helps 1st-time homebuyers purchase a home with a participating mortgage lender.
As long as the homebuyer is an occupant of the home as a primary residence, the Mortgage Credit Certificate (MCC) offers a tax credit of up to $2K annually. To calculate the tax credit, multiply the annual interest paid on the mortgage loan by the mortgage credit rate of thirty-five percent. The program is helpful because the credit increases the participant’s income and thus their ability to qualify for a home loan. Moreover, the Mortgage Credit Certificate (MCC) can potentially save the homebuyer thousands of dollars over time.
To demonstrate how much the Mortgage Credit Certificate could save a program participant, let’s view the savings of a homebuyer with a 30-year-fixed-rate mortgage with loan amount of $120,000:
|Mortgage Amount||Interest Rate||Total Interest Paid First Year||Mortgage Credit Certificate Rate||Tax Credit|
Annually, the maximum credit amount is $2,000. In year one, the homebuyer take the tax credit of $2,000. In the second year, if the homeowner chooses to do so, they can file a revised W-4 withholding form, which would give the homebuyer $166.67 in added disposable income each month. The homebuyer files the 8396 tax form with their income tax return in order to claim the tax credit. Access the form www.irs.gov.
Qualified individuals and families must meet the following requirements of the MCC Program:
The property being purchased must be within the following cities or counties:
- Texas Counties of Ellis, Hunt, Kaufman, Navarro, Rockwall
- Texas Cities of Cedar Hill, DeSoto, Duncanville, Lancaster and Waxahachie
- Maximum home price cannot exceed $237,031. Eligible homes include newly constructed and existing homes.
- In the last three years, the borrower could not have owned a home as their primary residence.
- Annual gross income limits are as follows:
|Number of Persons||Navarro County||All Other Areas|
|1 or 2 persons||$55,000||$66,500|
|3 + persons||$63,250||$76,475|
- Participants must meet mortgage loan requirements for underwriting and creditworthiness. Please note, for a mortgage with New American Funding utilizing this MCC Program, the minimum credit score requirement is 640.
- The home being purchased must be the participant’s primary residence.
Fees & Costs
$100 MCC Program Application Fee
$250 MCC Closing Package Review Fee
1% of the Loan Amount for MCC Insurance Fee
The fees for the MCC can be paid by the homebuyer, seller, mortgage lender or any other person on the homebuyers’ behalf. Upon closing, the MCC fees must be paid.
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.