What if we told you there’s a way to get Down Payment Assistance AND reduce your taxes every year for the life of your loan? Through ACE Home Mortgage’s TSAHC partnership, you can combine Down Payment Assistance with Mortgage Credit Certificates (MCCs) for maximum savings.
For Homebuyers: The Ultimate Savings Combination
The MCC + DPA combination is the most powerful homebuying benefit available in Texas:
Down Payment Assistance Benefits: – Up to $30,000 in grants or forgivable loans – Immediate reduction in out-of-pocket costs – Lower monthly payments due to reduced loan amount
Mortgage Credit Certificate Benefits: – 15% federal tax credit on annual mortgage interest – Up to $2,000 per year in tax savings – Counts as income for loan qualification – Lifetime benefit while you own the home
Real-World Double Savings Example
The Martinez Family, Dallas: – Home purchase price: $420,000 – Down Payment Assistance: $22,000 – Annual mortgage interest: ~$26,000 – MCC tax credit (15%): $2,000 per year
First-year total benefit: $24,000 30-year MCC savings: $60,000 Total program benefit: $82,000+
Processing time: 2 extra days Savings per day: $12,000
Understanding Mortgage Credit Certificates
An MCC is not a deduction – it’s a dollar-for-dollar tax credit:
Tax Deduction vs. Tax Credit: – Deduction: Reduces taxable income (saves you your tax rate percentage) – Credit: Reduces taxes owed dollar-for-dollar (saves you the full amount)
MCC Example: If you pay $24,000 in mortgage interest annually: – MCC credit: $3,600 (15% of $24,000) – Maximum annual credit: $2,000 – Your tax savings: $2,000 per year
The Qualification Boost Effect
Here’s where MCCs become really powerful – they count as income for loan qualification:
Traditional Qualification: – Annual income: $75,000 – Debt-to-income ratio: 43% – Maximum loan amount: $322,500
With MCC Qualification: – Annual income: $75,000 – MCC annual benefit: $2,000 – Effective income: $77,000 – Maximum loan amount: $331,100
The MCC increases buying power by approximately $8,600 in this example.
For Real Estate Agents: The Double Benefit Sales Tool
When you can offer clients both immediate savings AND long-term benefits, you become the agent who delivers exceptional value.
How to Present the Double Benefit:
Step 1 – Immediate Impact: “This Down Payment Assistance program will save you $20,000 upfront on your home purchase.”
Step 2 – Long-term Value: “Plus, the Mortgage Credit Certificate will save you $2,000 every year in federal taxes for as long as you own the home.”
Step 3 – Total Value: “Combined, you’re looking at over $80,000 in total savings over the life of your loan.”
Step 4 – Time Investment: “All of this requires just two extra days of processing time.”
MCC Qualification Requirements
MCCs are available to borrowers who: – Are first-time homebuyers (with some exceptions) – Meet income limits (typically 80% of area median income) – Purchase homes within price limits – Use the home as their primary residence
Special MCC Benefits for Heroes: – Teachers, firefighters, EMS, police, and veterans get FREE MCCs – Normal MCC fees are waived for qualifying heroes – Enhanced processing for faster approvals
The Processing Timeline
Combined DPA + MCC processing: 1. Application submission: Day 1 2. Initial underwriting: Days 1-10 3. TSAHC review: Days 11-25 4. Final approval: Days 26-32 5. Closing coordination: Days 33-35
Total timeline: 35 days average Additional time vs. traditional: 2-3 days Financial benefit: $20,000+ first year, $60,000+ lifetime
Maximizing Your MCC Benefits
Tips for getting the most from your MCC:
Tax Planning: – Adjust withholdings to account for the credit – Use tax savings for additional investments – Consider the credit in retirement planning
Loan Management: – Understand how refinancing affects your MCC – Know the rules for selling and transferring – Plan for maximum long-term benefit
The Double Savings Decision
When you can get both Down Payment Assistance AND Mortgage Credit Certificates, the financial benefits are simply too substantial to ignore.
The numbers don’t lie: – Immediate savings: $15,000-$30,000 – Annual tax savings: Up to $2,000 – 30-year total benefit: $75,000-$90,000+ – Additional processing time: 2-3 days
Ready to double your savings? – Homebuyers: Contact ACE Home Mortgage for your free DPA + MCC analysis – Real Estate Agents: Learn how to present the double savings opportunity
Two programs. One application. Maximum savings. Let’s get started!
