Texas Gov. Rick Perry and the Texas Department of Housing and Community Affairs (TDHCA) have announced the launch of a new home buyer initiative with a special focus on veterans.
The TDHCA is releasing $30 million in mortgage credit certificate authority through its Texas Mortgage Credit Program, a home buyer program that provides a dollar-for-dollar reduction of a borrower's tax liability, not to exceed $2,000 annually.
Under the program, home buyers earning up to 115% of the area median family income are eligible to deduct 30% of the annual interest paid on their mortgage loan up to the maximum amount of $2,000 per year. The $2,000 is then deducted from the borrower's annual tax liability, and the benefit lasts for the entire life of the mortgage loan.
For residents living in specific targeted areas of the state, such as those impacted by Hurricane Rita, households may earn up to 140% of the median family income and still be eligible to participate, and the first time home buyer requirement is waived.
The first time home buyer status requirement is also waived for qualifying veterans of the nation's armed forces. However, veterans must have received an honorable discharge as evidenced by form DD-214 to be eligible to participate in this homebuyer program.
"While we can never fully thank the brave men and women who defend our country for their selfless service, this program helps our military veterans, who protected the American dream, return to civilian life by giving them the opportunity to live it," Perry says.
The credit authority will allow the TDHCA to make approximately $120 million worth of mortgage loans, which the department estimates will help 772 households purchase a home of their own.
The Mortgage Credit Program targets individuals and families buying their first home or who have not owed a home in the previous three years.