Liberty Mortgage

Information from Texas Department of Housing and Community Affairs

Texas Mortgage Credit Program

The Texas Department of Housing and Community Affairs created its Texas Mortgage Credit Program for the residents of Texas, to help make ownership of new and existing homes more affordable for individuals and families of low and moderate income, especially first time buyers.

 Liberty Mortgage is one of the few lenders in Texas participating in the MCC program and being able to use your $8000 Tax Credit upfront towards your Down Payment. (THIS PROGRAM IS OUT OF MONEY,IT MAY GET MORE)

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Who is eligible to receive an MCC? The program is open to those individuals and families who:

• meet income and home purchase requirements;
• have not owned a home as primary residence in the past three (3) years;
• meet the qualifying requirements of the mortgage loan;
• will use the home as their principal/primary residence.

Note: The MCC may not be used in connection with the refinancing of an existing loan, unless the loan meets the “Qualified Subprime” loan guidelines.. Targeted Areas – first time homebuyer requirement is waived; increased income and purchase price limits.

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Texas Veteran’s Mortgage Credit Program: The Texas Veteran’s Mortgage Credit Program gives those who served a chance to save. As a military veteran, you protected the American Dream. Now is your opportunity to live it. The Texas Veterans’ Mortgage Credit Program is part of and identical to the Texas Mortgage Credit Program – with one exception! For veteran’s that served in active duty, were honorably discharged as evidenced by Form DD-214 and who have not previously had a mortgage financed through a mortgage revenue bond program, are exempt from the first time homebuyer requirement. You must still meet the applicable acquisition and purchase price limit requirements of a non-targeted area unless purchasing in a targeted area census tract, Hurricane Rita Gulf Opportunity Zone or designated disaster area. Even better, if you are a veteran, are a first time homebuyer and buy a home before December 1, 2009, you can combine the $2,000 tax credit with the one-time federal Tax Credit of up to $8,000.

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How much of a tax credit can be issued under the MCC program? The size of the annual tax credit will be 30% of the annual interest paid on the mortgage loan. However, the maximum amount of the tax credit shall not exceed $2,000 per year. The credit cannot be larger than the annual federal income tax liability, after all other credits and deductions have been taken into account. MCC credits in excess of the current year tax liability may, however, be carried forward for use in the subsequent three years.