In the November 28, 2008 issue of the Texas Register (Volume 33, Number 48), the Texas Department of Housing and Community Affairs published notice of its Mortgage Credit Certificate Program. For those clients who qualify and are interested in participating in this program, the Notice published in the Texas Register is reprinted below. “Notice to Public and to All Interested Mortgage Lenders: Mortgage Credit Certificate Program “The Texas Department of Housing and Community Affairs (the “Department”) intends to implement a Mortgage Credit Certificate Program (the “Program”) to assist eligible very low, low and moderate income first-time homebuyers purchase a residence located within the State of Texas. “Under the Program, a first-time homebuyer who satisfies the eligibility requirements described below may receive a federal income tax credit in an amount equal to the product of the certificate credit rate established under the Program and the interest paid or accrued by the homeowner during the taxable year on the remaining principal of the certified indebtedness amount incurred by the homeowner to acquire the principal residence of the homeowner; provided that such credit allowed in any taxable year does not exceed $2,000. In order to qualify to receive a credit certificate, the homebuyer must qualify for a conventional, FHA, VA or other home mortgage loan from a lending institution and must meet the other requirements of the Program. “The credit certificates will be issued to qualified mortgagors on a first-come, first-served basis by the Department, which will review applications from lending institutions and prospective mortgagors to determine compliance with the requirements of the Program and determine that credit certificates remain available under the Program. No credit certificates will be issued prior to ninety (90) days from the date of publication of this notice nor after the date that all of the credit certificate amount has been allocated to homebuyers and in no event later than the date permitted by federal tax law.
