Mortgage Certificate Program – (MCC)

The MCC Program provides a tax credit up to $2,000/year for the life of the mortgage loan!


How it Works:

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.


Can assist in qualifying the homebuyer for more home.  For Fannie Mae, Freddie Mac, you can increase the homebuyer’s income by the tax credit amount.  For FHA, you can reduce the monthly payment by the tax credit amount.  This results in increased buyer capacity to qualify for the mortgage loan. There is no added benefit with VA.  (Maximum Tax Credit Amount of $2,000/12 = $166.67)



  • Must purchase a home less than $243,945 within the City of Garland, Texas as principal residence.
  • Homebuyer could not have owned a home in the last three years as their primary residence (unless a qualified veteran).
  • Household income must not exceed the maximum limits: $68,300 for 1 – 2 occupants or $78,545 for 3 or more occupants.
  • Homebuyer must apply for the MCC through a participating lender and attend a HOMEBUYER EDUCATION CLASS.


Cost for the MCC Program is $100 MCC Application Fee, $250 Closing Package Review Fee and 1.00% MCC Issuance Fee. The fees can be paid by buyer, seller, lender, or rolled into the loan. GHFC offers a Down Payment Assistance Programs to help mitigate this and other closing costs. PLEASE CLICK HERE TO VIEW THE DPA PROGRAM ASSISTANCE PAGE