TDHCA Mortgage Credit Certificate (MCC) Program

What is TDHCA Mortgage Credit Certificate (MCC) Program?

TDHCA Mortgage Credit Certificate (MCC) Program is a mortgage credit certificate for homebuyers in Texas.

• TDHCA's Texas Mortgage Credit Certificate provides eligible first-time homebuyers a federal income tax credit equal to 20% of annual mortgage interest paid, reducing federal tax liability dollar-for-dollar each year the home is their primary residence. The standalone MCC may be combined with eligible first mortgage products. A recapture provision applies if the home is sold within 9 years.
• 20% annual mortgage interest tax credit.
• Dollar-for-dollar federal tax reduction.
• Statewide.
• Standalone or combo.
• Funding comes from State.

How much assistance does it provide?

TDHCA Mortgage Credit Certificate (MCC) Program provides assistance worth 20% of the purchase price, as set by the program.

• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

TDHCA Mortgage Credit Certificate (MCC) Program is a tax credit rather than a loan, so there is nothing to repay.

• The assistance is recorded in Grant (no lien) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

TDHCA Mortgage Credit Certificate (MCC) Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

TDHCA Mortgage Credit Certificate (MCC) Program sets its income limit as follows: Income limits follow TDHCA My First Texas Home limits (~115% AMI); vary by county and household size.

• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

TDHCA Mortgage Credit Certificate (MCC) Program can be used for Single-family.

• New construction is eligible.

Where does it apply?

TDHCA Mortgage Credit Certificate (MCC) Program serves buyers purchasing anywhere in Texas.

• The program gives priority to designated target areas, so the address matters as well as the county.

How do you apply?

Applications for TDHCA Mortgage Credit Certificate (MCC) Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Contact the administering agency to reserve funds

   Funds are reserved with the provider and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.