Down Payment Assistance Program

The down payment assistance program is comprised of two parts, the Mortgage Credit Certificate (MCC) and the Down Payment Assistance Program (DPA). 

Mortgage Credit Certificate

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

How to Apply

  • Choose a Lender. Lenders must be approved by Hilltop Securities to participate in the Garland HFC MCC/DPA Program. Interested lenders should contact Hilltop Securities Inc. at 214.953.4176 or [email protected].
  • Your application for MCC, with or without the DPA must be made before loan closing.
  • Read and sign your Program application and affidavit and other documentation that the lender prepares and sends to the program administrator.
  • If your Program application is approved, the program administrator will coordinate with Garland HFC to release the funds to title for your closing.
  • Sign the MCC Closing Affidavit with the other closing documents at loan closing.
What is an MCC?
The MCC Program is a federal income tax credit program. An MCC entitles you to take a federal income tax credit equal to thirty percent (30%) of the annual interest you pay on your home mortgage, up to a maximum of $2,000 per year. Because the MCC reduces your federal income taxes and increases your net earnings, it is a great tool to help in qualifying for your first home mortgage. The MCC is registered with the IRS, and each year when you file your taxes, you will have the opportunity to benefit from the tax credit, as long as the property remains your primary residence and have a mortgage payment. In addition, you must have a tax liability to benefit from the annual credit in any given year.
How Does it Work?

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 30%. 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 30% of the interest paid would equal $2,160. (30% x $7,200 = $2,160). However, the maximum annual credit allowable is $2,000.

Personal Impact

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)

How to Qualify
  • Your loan qualifying income must not exceed the limits shown below.
  • You must not have owned a principal residence in the last three years unless you are a Qualified Veteran.
  • You must occupy the home as your principal residence.
  • You must apply for the MCC, with or without the DPA through a participating Lender.
  • You must purchase a home within the Eligible Loan Area
MCC and DPA Program Limits

Maximum Income:
Non-Targeted Area 1 or 2 persons: $110,300 | 3 + persons: $126,845
Targeted Area 1 or 2 persons: $132,360 | 3 + persons: $154,420

Maximum Purchase Price:
New & Existing Non-Targeted Areas: $577,842
Targeted Areas:  $706,251

Eligible Loan Area

The geographic boundaries of the City of Garland, Texas

Targeted Census Tracts

Targeted area census tracts are defined as areas where 70% of the families earn 80% or less of median income. Applicants who purchase homes in these areas do not have to be a first-time homebuyer. The current targeted area census tracts within the City of Garland are: 0182.04, 0185.06* and 0190.13.


The 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. 

Mortgage Financing

The Program does not place restrictions on the mortgage financing with regard to type, term or rate, except to require that the mortgage be a primary mortgage and to disallow refinancing unless issued to replace a construction period loan or bridge loan of a temporary nature.

MCC Package Review Fee: $250
MCC Issuance Fee: $1,000
No Additional Application Fees for DPA

Fees are due at closing and may be paid by the seller, borrower or lender.

Down Payment Assistance Program

This program was designed to mitigate the upfront cost of the MCC PROGRAM and must be used in conjunction with it.

What is DPA?

The Garland Housing Finance Corporation  MCC with Down Payment Assistance Program provides first-time homebuyers with down payment and closing cost assistance. The total amount of assistance is $15,000 in the form of a $10,000 non-forgivable second lien with a non-repayable $5,000 grant per qualifying household.  Repayment for the second lien is due upon maturity, sale, transferor refinancing. DPA is optional but ony available with the  Mortgage Credit Certificate Program (MCC).

Program Highlights

  • A non‐forgivable second lien of $10,000 per household is available to eligible homebuyers. The amount to be repaid uses the following schedule:
    1. $10,000.00 if the homebuyer(s) pay(s) the Note in full on or before the 36th month from the date of the Note
    2. $10,500.00 if the homebuyer(s) pay(s) the Note in full after the 36th month from the date of the Note and prior to the 72nd month from the date of the Note
    3. Thereafter the amount due will be $11,000.00
  • Due upon maturity, sale, transfer or refinance
  • Eligible second lien uses include down payment and closing cost assistance associated with purchase of home.
  • Must be used with MCC Program offered through the Garland Housing Finance Corporation
  • If your loan was received prior to 2018, these dates may vary. Review your Note for repayment information.

Eligible Households*

Must be utilizing the Garland Housing Finance Corporation’s MCC Program through a participating lender. Therefore, must meet the MCC Program guidelines listed below:

  • Purchase a home in Garland, Texas
  • Gross income of all individuals executing the Deed of Trust cannot exceed the maximum income limits, for 1‐2 persons is $123,720​ and for 3 or more persons is $144,340.
  • Must not have owned a principal residence in the last three years, unless you are purchasing a residence in a Targeted Area or are a Qualified Veteran.
  • Purchase price of the home cannot exceed the maximum sales price, whether the home you buy is new or existing, is $661,949.
  • Must occupy the property as the primary residence.
  • Meet standard mortgage underwriting requirements with FHA, VA, Fannie Mae, Freddie Mac or USDA‐RHS, as applicable demonstrating creditworthiness
  • Standard MCC program fees apply

*See MCC Program Summary for additional guidelines. The program is subject to available funds.


For More Information Contact

1201 Elm Street, Suite 3500 Dallas, Texas 75270