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Updated almost 5 years ago,
Is TSAHC DPA and MCC worth it for investing?
I saw a couple other posts about these programs on bigger pockets, but I still had some questions.
In the Dallas area the income limits are 64.2k for the Mortage Credit Certificate and Down Payment Assistance combo which I currently qualify for. The MCC effectively lets you save the 2,000 every year as a tax credit, which partially offsets the higher interest rate of the DPA program.
As of late 2019, they changed it so that you can only pair the DPA with a governmental style loan unfortunately, so PMI might also suck. My initial thoughts are that this would be a great program to use if I wanted to househack a SFH that I also wanted to live in for over 3 years.
My questions are:
1. Does anybody else have experience with using this program as a beginner investor tool?
2. Were there any implications if you wanted to refinance? Was this considered a sale that would trigger potential tax recaptures? It seems like this would work best after the 3 year period if so.
3. From my conversations with a lender, it seems like I am in the clear after the 3 year period for payback of the DPA grant, and MCC is not tested again after closing, so as long as I live in the property I can keep using the 2,000 tax credit.