Texas Department of Housing and Community Affairs (TDHCA) MCC Program

Down Payment Assistance



Location Served: Texas

Provider: Texas Department of Housing and Community Affairs

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



A Mortgage Credit Certificate permits the homebuyer to claim a tax credit for a portion of the mortgage interest paid per year. Therefore, a Mortgage Credit Certificate is a dollar for dollar reduction against a homebuyer’s federal tax liability. It is important to note that the Mortgage Interest Credit (MCC) is indeed a non-refundable tax credit, which means the homebuyer MUST have tax liability in order to benefit from this program.

How can I receive a Mortgage Credit Certificate?
What is a Texas Veteran’s Mortgage Credit Program?
How much of a tax credit will I receive through the MCC program?


MCC Example


Eligible applicants receive MCCs directly and are then able to take a tax credit equal to a specified percentage of the interest they paid on their mortgage that year or up to $2,000. The MCC rate is 35 percent of the applicant’s total interest paid. Therefore, an applicant with a $135,000, 30-year, fixed mortgage would observe the following savings:

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)


By observing the table above, you can see that this particular applicant would be entitled to a tax credit of $2,000. Due to this entitlement, the applicant would be permitted to file in advance a revised W-4 withholding form taking into consideration the $2,000 tax credit, and have roughly $167 of additional disposable income each month for the next year.

MCC Program Eligibility Requirements:
How long will my MCC be in effect for?
What is a Targeted Area?
What is the Homebuyer Education Requirement?
Are there any additional costs/fees with the MCC Program?
What should I do if I lose or misplace my Mortgage Credit Certificate?


What happens if I lose or misplace my MCC?


Contact TDHCA at 512-475-3993 for a replacement certificate. There is a $50.00 fee for this service.
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

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