Home Buyer Programs

We offer two programs to assist first time home buyers in Garland, TX


Mortgage Certificate Program (MCC):

A Mortgage Credit Certificate provides a tax credit up to $2,000 a year as long as the homebuyer occupies the home and has a mortgage.  Calculated by taking the annual interest on the mortgage loan multiplied by the mortgage credit rate of 35%.  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.



Down-payment Assistance Program (DPA):

  • Provides up to $5,000 towards down payment and closing costs when used in conjunction with the Garland HFC Tax Credit (or MCC Program).
  • This program was designed to help cover the upfront cost of the Tax Credit Program of $1,300. The amount utilized (between $1,300 – $5,000) is up to the borrower.
  • Use of both programs generally allows the buyer to get in with NO MONEY DOWN.
  • This DPA funds serve as upfront tax credit funds and must be repaid to GHFC within two tax seasons from closing. Basically we give the buyer access to two and a half years of the $2,000 tax credit at closing to simplify the issue of closing funds. Since the tax credit is obtained every year at tax time, we base the repayment around tax time.
  • Buyer has two “tax seasons” (mid-April) to repay the DPA funds without penalty.