Tarrant County Finance Corporation Programs
Down Payment Assistance
Two Main Benefits to the Homebuyer:
- The Tarrant County Housing Finance Corporation (HFC) Mortgage Credit Certificate Program (MCC) gives homebuyers the opportunity to earn up to $2,000 per year they occupy their home and pay their mortgage. Eligible homebuyers may receive a mortgage credit certificate equivalent to the amount of annual interest paid on their home multiplied by 35%. For example, a homebuyer with a $120,000 loan at a 6.00% interest rate, would pay approximately $7,200 in annual interest. An MCC tax credit of 35% of the interest paid would equal $2,520. (35% x $7,200 = $2,520). However, the maximum annual credit allowable is $2,000.
- The Tarrant County HFC Mortgage Credit Certificate Program can also help the homebuyer qualify for a home loan. Basically under Fannie Mae, Freddie Mac and USDA-RHS, the homebuyer’s income will increase in the amount of the tax credit they receive. For FHA home loans, the homebuyer can reduce their monthly mortgage payment by the tax credit amount. Both of these scenarios result in increased homebuyer capacity to qualify for the mortgage loan. However, there are no additional benefits with VA home loans. (Maximum Tax Credit Amount of $2,000/12 = $166.67)
To qualify for the Tarrant County HFC MCC Program, the homebuyer must meet the following requirements:
- The homebuyer must purchase a home located in Tarrant County, Texas.
- The homebuyer must be a first time homebuyer or not have owned a home in the past three years as their primary / principal residence. However, homebuyers purchasing a home in a Targeted Area* or those classified as Qualified Veterans are exempt from this Tarrant County HFC MCC Program requirement.
- The homebuyer’s household income may not exceed the maximum limits* set by the Program below:
- $66,000 for 1 – 2 occupants
- $75,900 for 3 or more occupants
- The purchase price of the home may not be greater than $258,691.
- The homebuyer must use the purchased home as their principal residence.
- Application for the MCC must be done through a participating lender.
- Cost for the MCC Program is $100 MCC Application Fee, $250 Closing Package Review Fee and 1.00% MCC Issuance Fee. The fees can be paid by buyer, seller, lender, rolled into the loan.
- The Tarrant County HFC MCC Program in allowed to be stacked with other city and/or county Down Payment Assistance Programs
- For homes under a binding contract by April 30, 2010, the MCC can be combined with the $8,000
Federal Home Buyer Tax Credit
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.