Have you heard that you may be eligible for an annual $2,000 tax credit that directly reduces your federal tax liability? Ask your mortgage loan officer if you are eligible! As a Texas homebuyer, if you meet certain income, home, and mortgage loan requirements you may be eligible to receive a Texas Mortgage Credit Certificate good for up to $2,000 tax credit per year. The tax credit equals 40% of interest you paid on your mortgage per year and is good for the term of the mortgage loan, as long as the home remains your primary residence.

How does it work? The Mortgage Credit Certificate is intended to help first time homebuyers, veterans, and homebuyers in targeted low income areas. The mortgage must also be underwritten according to FHA, VA, USDA/RHS or conventional loan criteria. Additionally, new and existing single family homes, townhouses, condominiums and manufactured housing (with certain restrictions) are eligible properties. The homebuyers will need to take a pre-purchase homebuyer education course prior to the closing of the mortgage loan and receive a Certificate of Completion.

If you meet all of the criteria, you will be given a Mortgage Credit Certificate, which entitles you to claim 40% of the annual interest you pay on your mortgage as a tax credit on your Federal Tax return for the term of your mortgage or until the home is no longer your primary residence.

We are one of a select group of lenders that can participate in this program so please discuss your eligibility with your loan officer to see if you qualify.