Texas Loan Options
Texas Mortgage Credit Certificate (MCC) Program for First Time Buyers
The Texas Mortgage Credit Certificate (MCC) Program is designed to help first-time homebuyers achieve affordable homeownership.
This program provides a valuable tax credit, reducing the homebuyer’s federal income tax liability and increasing overall affordability. Tailored for low- to moderate-income families, the MCC program makes it easier to qualify for a mortgage and manage monthly payments. By lowering the cost of homeownership, this initiative helps more Texans turn their homeownership dreams into reality.
Program Highlights of the Mortgage Credit Certificate (MCC) Grant
The MCC Grant reduces the amount of federal income tax you pay, thus giving you more available income to qualify for a mortgage loan and assist you with mortgage payments, making it ideal for First-Time Home Buyers.
20% of your annual mortgage interest will be a direct federal tax credit*, resulting in a dollar-for-dollar reduction of your annual federal income tax liability. The remaining 80% of your annual mortgage interest will continue to qualify as an itemized tax deduction.
Income & Purchase Limits
Current as of published information dated May 3, 2023.
Connect with one of our experienced loan officers today to verify up-to-date program requirements.
Income Limits:
| Non-Targeted | Non-Targeted | Targeted | Targeted | |
|---|---|---|---|---|
| County | Family Size of 2 or Less | Family Size of 3+ | Family Size of 2 or Less | Family Size of 3+ |
| El Paso | $91,600 | $105,340 | $109,920 | $128,240 |
| Lubbock | $91,705 | $105,461 | $109,920 | $128,240 |
| Bexar | $104,141 | $119,763 | $109,920 | $128,240 |
| Tarrant | $102,717 | $118,125 | $122,280 | $142,660 |
| Travis | $126,000 | $144,900 | $151,200 | $176,400 |
Texas 2024 Purchase Price Limits:
| County | Non-Targeted | Targeted |
| El Paso | $510,939 | $624,481 |
| Lubbock | $510,939 | $624,481 |
| Bexar | $571,946 | $699,045 |
| Tarrant | $577,842 | $706,251 |
| Travis | $586,097 | $716,340 |
*The income limits may be increased or decreased by the HHFDC pursuant to U.S. Internal Revenue Service guidelines. The annual gross income limits are available upon request. The income limits are for Non-Targeted Areas. Please contact the HHFDC for income limits in Targeted Areas.
**The purchase price limits apply only to fee simple fully completed units. Leasehold residences and uncompleted units are subject to certain adjustment in determining their “acquisition cost” as defined by the U.S. Internal Revenue Service guidelines.
Note: if you choose to refinance an existing MCC-assisted mortgage, your original MCC becomes null and void. You must obtain a reissuance of the original MCC in order to continue to qualify for the tax credit.
Information and self-help tools are provided for your independent use and are not intended to provide investment advice. We cannot and do not guarantee loan eligibility or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to speak with one of our experienced loan officers for a loan eligibility analysis and custom rate and payment estimate.
