Teacher Mortgage Credit Tax Program

 This program is for any teacher who works for a public school. It is officially called the Mortgage Credit Certification or MCC. With an MCC, the qualified homebuyer is eligible to write off a portion of the annual interest paid on the mortgage as a special tax credit, not to exceed $2,000, during each year that they occupy the home as their principal residence and have a mortgage. The portion or amount of the tax credit is equal to the mortgage credit rate on the MCC of 35% multiplied by the annual interest paid. 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. An MCC is a true “tax credit” that entitles taxpayers to subtract the amount of the credit from their total federal income tax liability, receiving a dollar for dollar savings. The buyer will receive this tax credit each year for as long as they own the house. 

    The MCC also allows the buyer to be get credit in the underwriting of an FHA loan, meaning you can qualify for more home. I have had examples where the buyer had been denied by another lender and I got them approved for an FHA loan using this program. But, keep in mind this tax credit can be used with FHA, VA and conventional loans. This program is for all teachers, Librarians, teacher aides, school counselors and school nurses. You can also qualify for this program if you are a police officer, firefighter, EMS personal, county jailor and corrections officer. Please call me today with any questions on this program. These tax credits are available for home buyers in Harris County, Fort Bend County, Brazoria County, Montgomery County or any part of Texas.