Texas Mortgage Credit Certificate (MCC) Program

About This Program

The Texas Mortgage Credit Certificate allows first-time homebuyers to convert 20% of their annual mortgage interest into a dollar-for-dollar federal tax credit (up to $2,000/year), reducing the federal tax owed annually for the life of the mortgage. The remaining 80% of mortgage interest is still deductible. The MCC stays with the homeowner as long as the home remains their primary residence.

20% of annual mortgage interest = annual tax credit (max $2,000/year for life of loan)

Key Details

• First-time homebuyer or no primary residence ownership in prior 3 years
• 20% of annual mortgage interest converted to federal tax credit (max $2,000/year)
• Remaining 80% of interest still deductible as itemized deduction
• Applies for the life of the mortgage as long as home is primary residence
• Income and purchase price limits apply — apply through participating lenders

How to Apply

Deadline: Open — apply at time of home purchase through participating lenders