Harris County Housing Finance Corporation Announces Money-Saving Tax Credit Program for Homebuyers

The affordable housing initiative has been developed to create home ownership opportunities for first-time homebuyers.

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The program can result in a savings of $30,000-$40,000 over the life of the loan because the credit lasts as long as the buyer occupies the residence and pays on the mortgage.

Harris County, Texas (PRWEB) March 27, 2014

Whatever the reason ‒ moving to a better school district or closer to a new job ‒ for many individuals home ownership is a near-term goal. This year, they are looking to buy and now have an increased incentive from the Harris County Housing Finance Corporation (HFC). The Harris County Housing Finance Corporation recently announced an increase in the amount first-time buyers can save using its mortgage tax credit or Mortgage Credit Certificate (MCC) Program, to 50 percent. That enables those qualified buyers to receive an annual, dollar-for-dollar mortgage interest tax credit amounting to half the interest paid on the loan, up to $2,000 each year.

“This increase can be the lifeline first-time buyers who are looking for a home this year. The MCC amounts to about $167 a month savings per borrower or approximately an additional $2,000 tax refund. This is a proven method of saving money," said Steven Harris, Program Manager for the Harris County HFC MCC. “The program can result in a savings of $30,000-$40,000 over the life of the loan because the credit lasts as long as the buyer occupies the residence and pays on the mortgage.”

In addition to the Mortgage Credit Certificate Program, Harris County HFC also provides a down payment assistance grant program called 5-Star, with up to 5 points of down payment and closing cost assistance. programs can be used jointly to encourage homeownership.

Harris County HFC is a successful non-profit agency responsible for adding more than $1.8 billion to the county economy with housing and economic development programs, including new facilities and impacting thousands of new home buyers. Alone, Mortgage Credit Certificates have made it possible for more than 3,000 families to purchase single in the area. In fact, Harris County HFC has offered more than $300 million for home loans using the MCC since 2004.

The MCC program is open to individuals and families who

  •     Have not owned a home in the last 3 years; (according to federal guidelines defining "first-time homebuyers.")
  •     Meet the income and home purchase price requirements;
  •     Qualify for a mortgage loan;
  •     Will use the home as their principal residence;
  •     Will use the loan for the home purchase but not for refinance; and,
  •     Will not use a bond loan.
The authorization to implement the single family MCC program extends across Harris County but not within the cities of Houston, Baytown, Deer Park, Friendswood, La Porte, League City, Missouri City, Pasadena and Pearland. It is available immediately and may be accessed through participating lenders.

To obtain an MCC, buyers should:

  •     Call a participating lender or Realtor® for details;
  •     Obtain a contract to purchase the new or existing home;
  •     Meet program guidelines and qualify for the home mortgage;
  •     Receive a reservation from a lender for a Mortgage Credit Certificate to save 50% of the mortgage interest;
  •     Close on the purchase of a home; and,
  •     Obtain the Mortgage Credit Certificate.
The authorization to implement the single family MCC program extends across Harris County but not within the cities of Houston, Baytown, Deer Park, Friendswood, La Porte, League City, Missouri City, Pasadena and Pearland. It is available immediately and may be accessed through participating lenders.
It should be noted that income guidelines were increased in December of 2013. For more information about the Harris County HFC MCC program or to see a list of lenders who have been trained to use the program, please visit the website at http://www.harriscountyhfc.org or call 713-260-3553 for a free brochure and list.

Reporters & Editors: See attachment


Contact

  • Jeanne Knapp
    Knapp Communications
    +1 7135695101
    Email

Attachments

Example of MCC Savings Example of MCC Savings

An illustration of the amount that can be saved by home buyers using the program.


Example of MCC Savings Example of MCC Savings

An illustration of the amount that can be saved by home buyers using the program.


Example of MCC Savings Example of MCC Savings

An illustration of the amount that can be saved by home buyers using the program.