TDHCA Texas Mortgage Credit Certificate (MCC)

Administered by Texas Department of Housing and Community Affairs (TDHCA) · tdhca.texas.gov

Federal income tax credit equal to 20% to 25% of the mortgage interest paid each year, capped at $2,000 annually. Unlike a deduction, this is a dollar-for-dollar reduction in federal income tax owed, claimed every year you live in the home and pay the mortgage. Can be combined with TDHCA's My First Texas Home down payment assistance for stacked benefits. The MCC is FREE for buyers using TSAHC's Homes for Texas Heroes program. Most lenders charge a $500 to $1,000 issuance fee otherwise.

Eligibility requirements

✓Texas resident. First-time homebuyer (no ownership of a primary residence in the last 3 years), OR a veteran, OR purchasing in a federally targeted area. Income and purchase price limits set by county (similar to MFTH). Minimum credit score 620. Must take an approved homebuyer education course. The MCC must be issued at the time of loan closing - it cannot be added later.

How to apply

Apply directly on the official website. GrantLantern does not process applications — we link you directly to the source.

Apply at tdhca.texas.gov →

Opens the official source. GrantLantern is not affiliated with this program.

Program details sourced from official government and agency websites. Eligibility is determined by the administering agency — not GrantLantern. Verify current requirements at the official source before applying.

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