The Texas Department of Housing and Community Affairs has released $45 million in funding for the Texas Mortgage Credit Program, which provides tax credits for many first-time buyers in the state.
Through the program, eligible borrowers can deduct up to 30 percent of the annual interest paid on their mortgage, up to $2,000, which is deducted from their tax liability. That credit also carries throughout the entire life of the loan.
“Despite all the negatives we hear from other states, the fact is that the Texas economy – and the demand for homeownership – both remain quite healthy,” said Michael Gerber, TDHCA Executive Director. “Many families want and are ready to take that exciting step toward homeownership.”
To be eligible for the program, buyers can make up to 115 percent of the area’s median income. In some areas of the state which have been particularly hard-hit, borrowers can make up to 140 percent of the median income, and don’t need to be first-time buyers.
First-time homebuyers make a significant impact on the Houston real estate market. According to the National Association of Realtors, they made up 32 percent of all existing-home purchases nationwide in the month of November.
