•  Provides a tax credit up to $2,000 a year as long as the homebuyer occupies the home and has a mortgage.  Calculated by taking the annual interest on the mortgage loan multiplied by the mortgage credit rate of 35%.  For example, on a $120,000 loan at a 6.00% interest rate, the annual interest is approximately $7,200.  An MCC tax credit of 35% of the interest paid would equal $2,520. (35% x $7,200 = $2,520).  However, the maximum annual credit allowable is $2,000.

   

•  Can help qualify the homebuyer.  For Fannie Mae, Freddie Mac and USDA-RHS, you can increase the homebuyers income by the tax credit amount.  For FHA, you can reduce the monthly payment by the tax credit amount.  This results in increased buyer capacity to qualify for the mortgage loan. There is no added benefit with VA.  (Maximum Tax Credit Amount of $2,000/12 = $166.67)

   

•  Homebuyer must purchase a home within the City of Garland, Texas.

   

•  Homebuyer could not have owned a home in the last three years as their primary residence unless purchasing a home in a Targeted Area* or is a Qualified Veteran.

   

•  Homebuyer’s household income must not exceed the maximum limits set by the Program below:

   

$68,300 for 1 - 2 occupants

$78,545 for 3 or more occupants

•  The purchase price cannot not exceed $243,945.

   

•  Homebuyer must occupy the home as their principal residence.

   

•  Homebuyer must apply for the MCC through a participating lender.

    

   

Cost for the MCC Program is $100 MCC Application Fee, $250 Closing Package Review Fee and 1.00% MCC Issuance Fee.  The fees can be paid by buyer, seller, lender, rolled into the loan.

Can be stacked with city and/or county DPA programs!

For more information & assistance, please contact:

John Jacobs, Executive Director

JohnJacobs@GarlandHFC.ORG