Mortgage Credit Certificates

The Mortgage Credit Certificate (MCC) program provides an additional tool to help eligible homebuyers reduce their federal income tax liability. Offered through programs associated with Texas State Affordable Housing Corporation, the MCC may help make homeownership more affordable for qualifying borrowers. Help your clients explore a program designed to provide long-term tax benefits alongside their mortgage financing.

The credit is applied directly to the homebuyer’s annual federal income taxes, which may provide tax savings. By letting your clients know about this program, you can help them explore an additional tool that may make homeownership in Texas more attainable.

How this Program Helps Your Clients

Qualified borrowers receive a federal income tax credit equal to a percentage of the mortgage interest paid each year.

  • The credit is applied directly against the borrower’s federal tax liability.

  • The MCC remains in place for the life of the loan, provided the borrower occupies the home as their primary residence.

  • The certificate may be combined with certain loan products, subject to program guidelines.

All tax benefits are subject to IRS rules, and borrowers should consult a tax professional regarding eligibility and impact.

Eligibility Overview

Borrowers must meet program guidelines, which may include:

  • Minimum credit score of 620 (per MFSTPO program requirements)

  • Income limits

  • Purchase price limits

  • First-time homebuyer requirements (unless purchasing in a targeted area or otherwise exempt)

  • Property must be owner-occupied

All eligibility requirements are subject to current program guidelines.

Program Structure

The MCC is issued at closing and provides an ongoing federal tax credit based on a percentage of mortgage interest paid annually.

  • Available as a standalone MCC in accordance with program guidelines

  • Standard lender-paid compensation permitted per program rules

  • Subject to applicable recapture tax provisions

Don’t Qualify for MCC? Explore Other Options

Other programs may provide additional down payment and closing cost assistance. For more information visit our DPA Center!

Visit our DPA Center