Texas Mortgage Credit Certificate

Texas Mortgage Credit Certificate
Texas Mortgage Credit Certificate

A Texas Mortgage Credit Certificate or TMCC is issued by the government. It lets a taxpayer claim tax credit for a portion of the mortgage interest that they pay in any given year. This program is designed to make it easier for people who want to buy their first home to qualify for a loan.

Qualifying for the TMCC

If you want to qualify for a Texas Mortgage Credit Certificate, there are several criteria that you must satisfy. These relate to factors such as your income and of course, you must be purchasing a house for the first time. Qualified veterans will also be able to benefit. In some situations the criteria may be waived. For example, if your home is destroyed in a natural disaster, you may receive special consideration as a resident of the zone that you live in.

Home Ownership Criteria

People who already owned a home in the last three years will not be able to benefit from this program. If you owned a home but sold it and did not own one for four years or more you may be able to apply for the program. Special consideration may be given to people who want to purchase a home in a disaster zone.


If you want to receive assistance with purchasing your home under the Texas Mortgage Credit Certificate, your income must meet the criteria that has been set out by the government. Usually, your income must be at or below 80% of the median income. The price of the house that you want to buy must also be below a certain limit.

Use of the Residence

If you are not planning to use the home as a primary residence, you will not qualify under the Texas Mortgage Credit Certificate. Once you qualify, the tax credit may be up to 40% of the annual interest that you would pay on your mortgage. A cap of $2,000 is placed on that each year. You may use the program with any type of mortgage that is offered by lenders.