Texas Mortgage Credit Certificate

Turn your mortgage interest into a yearly federal tax credit

What Is a Mortgage Credit Certificate (MCC)?

A Mortgage Credit Certificate (MCC) is one of the most underused tools for Texas homebuyers. It turns part of the mortgage interest you pay each year into a dollar-for-dollar federal tax credit, which can put real money back in your pocket for as long as you live in the home and keep the loan.

How an MCC Works

A percentage of the mortgage interest you pay each year becomes a federal tax credit (not just a deduction)
You claim it every year you live in the home as your primary residence
You can still deduct the rest of your mortgage interest if you itemize
Many buyers adjust their paycheck withholding so they see the savings every month instead of waiting for a refund

MCC Programs for Houston-Area Buyers

SETH (Southeast Texas Housing Finance Corporation) MCC for eligible counties in our area
TDHCA Texas Mortgage Credit Certificate statewide where SETH does not cover the home, which can be paired with TDHCA down payment assistance

Who Qualifies for an MCC?

MCCs generally have income and purchase-price limits and are usually for first-time buyers (or buyers who have not owned a home in the last three years), with exceptions for veterans and homes in targeted areas. There is a program fee, and in my experience the yearly tax savings make it well worth it for buyers who qualify.

Ask me to add an MCC to your pre-approval and I will show you the estimated yearly savings next to your payment. Combine it with down payment assistance, an FHA loan or a VA loan. Please talk with your tax professional about how the credit applies to your situation.

Frequently Asked Questions

What is a Mortgage Credit Certificate in Texas?

An MCC is a certificate issued through programs like SETH and TDHCA that lets qualified homebuyers convert a portion of their yearly mortgage interest into a federal tax credit for as long as they live in the home.

Can I use an MCC with down payment assistance?

Often yes. Many Texas buyers pair an MCC with TDHCA or other down payment assistance. I will show you which combinations you qualify for.

Do I have to be a first-time buyer?

Usually you must not have owned a home in the last three years, but veterans and buyers in targeted areas may be exempt.

Clifton Saunders, NMLS #230688 | New American Funding, NMLS #6606 | Equal Housing Opportunity. Subject to credit approval; not all applicants will qualify. Loan programs, grant funds, income limits and guidelines can change at any time and vary by county. This is not a commitment to lend. Call or text 281-978-2106 to confirm current details.