Are you looking for a way to make Dallas homeownership more affordable? If so, you will be happy to learn the state of Texas offers an innovative program that allows Dallas homebuyers to enjoy an attractive tax credit that can be applied on an annual basis. In short, Texas will reward you for simply doing what you have always dreamt of doing: owning a Dallas home.
Earn Tax Credits After Purchasing a Home
Thanks to current Texas state tax laws, homeowners who qualify may receive Mortgage Credit Certificates, or MCCs, valued at up to $2,000 worth of tax credits each year. With these tax credits, the amount of federal income tax you are required to pay is reduced each year. Unlike tax deductions, which simply reduce the amount of income that is taxed, MCCs have a direct impact on the amount of tax you owe.
In addition to reducing your tax burden, MCCs can even help you with qualifying for a Dallas mortgage loan. This is because your calculated income can be increased by the tax credit amount if you are applying for a loan that is backed by Fannie Mae, Freddie Mac and USDA-RHS. In the case of a Dallas FHA loan, your monthly Dallas mortgage loan payment may be reduced by the tax credit amount. Therefore, will the help of MCCs, you are actually more likely to achieve the income necessary to qualify for a mortgage loan.
Qualifying for Mortgage Credit Certificates
As with all types of tax credits, you must meet certain criteria in order to be eligible for MCCs. Some of these eligibility requirements include:
- You must be purchasing your first home or you must have not owned a home within the past three years
- The Dallas area home will serve as your primary residence
- The cost of the home is equal to or less than the maximum purchase price limit
- The home is located in an eligible county
- Your income falls within the income eligibility limitations
While all people will not qualify for MCCs, many Dallas first-time homebuyers are eligible for this great program. Therefore, if you are thinking about purchasing your first home or you haven’t owned a home within the past three years, be sure to look into the Mortgage Credit Certificate program. Not only can it help you save money, but it can also make the home of your dreams a reality.
