SETH Mortgage Credit Certificate (MCC) Program

The Mortgage Credit Certificate (MCC) Program provides eligible homebuyers up to $2,000 each year in additional federal income tax credits. As a holder of the MCC, you will receive this credit each year as you pay off your mortgage loan.

Here is an example of one year of savings with the MCC Program:

Loan Amount $125,000
Interest Rate 4%
The buyer will have paid approximately $5,000 in interest that year.
$5,000 X 40% MCC rate = $2,000 tax credit
Tax credit provided by the MCC Program 40%
MCC savings for the homeowner $2,000


Actual savings experienced by a homeowner will depend upon the mortgage interest they pay on the home loan.

MCC Benefits:

  • Increases a family’s annual income by providing larger tax benefits
  • Helps buyers qualify for a mortgage loan
  • The longer you are in your home, the greater your savings.


This program can be combined with the SETH 5 Star Texas Advantage Program.

Are You Eligible?

Buyers must be a first-time homebuyer (not have owned a home in the past 3 years), except in census tract numbers – City of Baytown 2534, City of Pasadena 3220, 3230, 3231, 3235, 3239 and Walker County 7906 and 7907. (Targeted census track numbers have higher income and purchase price limits)

Buyers must meet income requirements, determined by family size and location of the home:

Click here for larger view

Location: 1-2 Family 3 or More Target Area
1-2 family
Targeted area
3 or more
Non – targeted
area Purchase
price limits
Targeted area
Purchase price
Austin County $82,700 $95,105 n/a n/a $311,979 n/a
Brazoria County $96,600 $111,090 n/a n/a $311,979 n/a
Counties of Chambers, Liberty, Waller, and Cities of Baytown, Deer Park, Dickinson, La Marque, La Porte, League City, Pasadena, Santa Fe, Shoreacres, Texas City and Tomball $79,200 $91,080 $95,040 $110,880 $311,979 $381,308
Matagorda County $75,100 $86,365 n/a n/a $311,979 n/a
Walker County $75,100 $86,365 $90,120 $105,140 $311,979 $381,308
Wharton County $75,100 $86,365 n/a n/a $311,979 n/a

MCC Program Areas:
The program is available in the following counties:
Austin, Brazoria, Chambers, Liberty, Matagorda, Walker, Waller, and Wharton.
And within the city limits of:
Baytown, Deer Park, Dickinson, LaMarque, LaPorte, League City, Pasadena, Santa Fe, Shoreacres, Texas City, and Tomball.

MCC Program Fees:


In addition to the typical costs associated with a mortgage loan, there are fees required when using the MCC Program. Loans are subject to an Application Fee of $75.

(If you sell your home during the first full nine years, make a profit, and your income increases each year by 5%, you may be subject to a Federal Recapture Tax.)

For additional information visit the IRS website at www.irs.gov – Form 8828.

Contact a participating Lender to get started.

Approved Lender List

Please contact Phyllis Constance for additional assistance.

Phyllis Constance
281.484.4663 ext. 111

Mortgage Credit Certificate Programs (MCC) Administered by SETH –
SETH administers many other local area MCC Programs. These MCC Programs provide a tax credit for the life of the mortgage loan. The amount of the tax credit is determined by the amount of interest you pay on the mortgage loan each year. MCC’s help reduce a homeowners burden by providing additional income for the family annually.

These programs can be combined with the SETH 5 Star Texas Advantage and the GoldStar Program.

Lenders email p.constance@sethfc.com for additional information.