MORTGAGE CREDIT CERTIFICATE
NORTH CENTRAL TEXAS HOUSING FINANCE CORPORATION
Mortgage Credit Certificate Program (MCC)
ANNUAL MORTGAGE INTEREST TAX CREDIT
What is a MCC?
Eligible homebuyers can receive a TAX CREDIT based on 35% of the annual interest they
pay on their home. Subject to an annual cap of $2,000.
By way of example, a homebuyer would pay $6,563 of interest after their first 12 months of
homeownership based on an $110,000 loan amount with a 30 year term at a 6.00%
mortgage rate. By applying for and receiving a 35% Tax Credit at the time of home
purchase, they would receive a Tax Credit of $2,000!! This is money that a qualified
homebuyer would not otherwise have received if not for the direct credit from the IRS using
the MCC Certificate.
Program Period:
June 23, 2006 to December 31, 2008, or until the program allocation of credits is used.
Eligible homebuyers can receive a TAX CREDIT based on 35% of the annual interest they
pay on their home. Subject to an annual cap of $2,000.
By way of example, a homebuyer would pay $6,563 of interest after their first 12 months of
homeownership based on an $110,000 loan amount with a 30 year term at a 6.00%
mortgage rate. By applying for and receiving a 35% Tax Credit at the time of home
purchase, they would receive a Tax Credit of $2,000!! This is money that a qualified
homebuyer would not otherwise have received if not for the direct credit from the IRS using
the MCC Certificate. You get this for the life of the loan. A homeowner that qualify’s gets
the lesser of $2000 or 35% of the interest they pay annually. e.g $125,000.00 30year fixed
rate 6%, you would get { (annual payment $9,000.00) monthly $750.00.} 1St yr int
$7458.00 x 35% = $2610.00 = tax credit
If you divide (2000.00 by 12) their monthly payment is reduced by that amount each month,
qualifying them for more house at a lower ratio.
June 23, 2006 to December 31, 2008, or until the program allocation of credits is used.
Issuer has three years to use funds. 1 person so far has been helped.
Eligible Loan Area: Counties of Ellis, Hunt, Kaufman, Navarro and Rockwall and the
Cities of Cedar Hill, DeSoto, Duncaville, Lancaster and Waxahachie.
Mortgage Product Types: Program may be used with any mortgage loan type offered
by a lender, except tax-exempt bond loans or veterans land board loans.
Cannot combine this with one of the allocation program 1st homebuyer mortgage revenue
bond.
Mortgage Term: All Loan Terms
Cost: $100.00 commitment fee plus 1.00% of loan amount and $250.00
Borrower Restriction: Could not have owned a home in the past three years
Purchase Price Limits:
Income Limits:
Navarro County
All Other Areas $237,031
Families of 2 or Less Families of 3 or More
$52,600 $60,490
$66,500 $76,475
For additional information concerning this program, please email Mary Bert-Koelling at
mkoelling@firstsw.com or call us at 214-953-4176 or 214-681-3311.
**Other qualifying guidelines, changes, and requirements may be in effect please contact
lender for further details.
NCTHFC means we will provide you a tax credit $ 4 $ of what you owe IRS
The city council is working on a registration program which will require builders to
register individually or as a corporation. This will help us monitor individuals who
abandon homes then register as a different company and then start building new
homes under a new name when they have unfinished houses down the street.