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Old 11-14-2013, 02:40 PM
 
501 posts, read 316,067 times
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MCC program website:
Texas Mortgage Credit Certificate Program

Is anyone familiar with the Mortgage Credit Certificate program here in Texas?

My girlfriend wants to buy a house, and we'd like to use the Mortgage Credit Certificate to get a yearly tax credit. I was told by a homebuilder representative that my girlfriend can get the MCC on her own, since she makes less than the income limit.

The issue is that the two of us have income higher than the MCC's income limit, and I do plan on living in the house. So is it still possible to get the MCC?
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Old 11-15-2013, 03:03 PM
 
Location: Westbury
3,283 posts, read 5,425,530 times
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if she is buying the home i.e. you are not married together and she is the one who will carry the deed and the mortgage than it is just based on her income. if she earns under 100k she would qualify

you dont need to be talking to anyone or filling out any paperwork if she will be the one to carry the house. it's all based on her debt/income ratio etc
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Old 11-15-2013, 03:06 PM
 
501 posts, read 316,067 times
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does anything change if we later get married? is it possible to just keep her on the deed/mortage (and leave me out of it) and be married?
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Old 11-16-2013, 12:33 AM
 
Location: Westbury
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not really. she can still carry the original deed/mortgage post-marriage in her name only. BUT if you marry it is kind of pointless because TX considers married couples as not having sole possessions. the house will be as much yours as her regardless of what a deed says. if she refis and you two are married you will be brought into the process whether she wants you to be or not. it's not really fair for the man or the woman in that situation

the 2nd part of my first post was just in terms of protecting yourself at this point in the game as you two aren't married. dating couples should not go into co-ownership of a house IMO (super messy situation in a break up if you dropped money into it/have your name in anyway attached). if she wants to buy it than it should be considered legally and mindfully as her home and she should be the one super invested in the purchase. that's just my tip from going through it myself

regarding the actual certificate - no nothing will change once married. you can apply the tax benefit to a joint tax filing. if you refi later you have to apply for a renewed certificate in order to continue getting the tax deduction
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Old 11-16-2013, 09:20 AM
 
501 posts, read 316,067 times
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thanks a lot for the info!
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Old 11-17-2013, 02:41 PM
 
Location: Houston/Brenham
4,600 posts, read 5,441,635 times
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Quote:
Originally Posted by testmo View Post
BUT if you marry it is kind of pointless because TX considers married couples as not having sole possessions. the house will be as much yours as her regardless of what a deed says.
This is so wrong that it's dangerous.

Texas is a community property state. Here's a common definition:

Quote:
Community property is ordinarily defined as everything the couple owns that is acquired during the marriage with the exception of separate property owned by either of them individually. Separate property is that property that each individual brings into the marriage, in addition to anything that either spouse acquires by inheritance during the marriage.
So your statement of "TX considers married couples as not having sole possessions" would be considered malpractice if you were a lawyer.

{this is rough, and there are exceptions, but for the purpose of this thread, it's good enough}:
If you owned it pre-marriage, it's separate property. If you acquired it during the marriage, it's community prop.

A big gotcha (a gray area, so to speak) is when you have something considered separate property, that you brought into a marriage, but is then maintained using community money. Like a house. You owned it before you were married, then continued to pay the mortgage after you were married. The courts will usually classify some, if not all, of that house as becoming community prop.

If you are worried about the legal ramifications of getting married on this credit program, consult a lawyer.
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Old 11-17-2013, 02:56 PM
 
Location: Westbury
3,283 posts, read 5,425,530 times
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Marriage doesnt fall into play with the certificate. Legal advice is not needed. You expect if they went to court in a divorce case the judge would consider the family home as solely hers? You ever been to court or seen how couples manage their finances?

And a mortgage broker or bank will not accept only 1 persons financial paperwork in a marriage. You dont truly buy a house on your own if you are married. You cant. That includes in any loan modifications

You paint a room in that house with your 50 bucks its community property. Near impossible for couples today to keep a house sole property of one person esp in a court system like texas. If she is worried about losing the home to OP in divorce etc she needs a prenup or post nup and a lawyer to do it. That doesnt even really protect large assets in texas

Last edited by testmo; 11-17-2013 at 03:05 PM..
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Old 11-17-2013, 04:57 PM
 
Location: Houston/Brenham
4,600 posts, read 5,441,635 times
Reputation: 8880
I got the impression the OP wasn't really worried about pre-nup, post-nup or comm prop. Just wanted to know about qualifying for the MCC, and how getting married would affect it. YOU made the reply about no such thing as sole possessions in Texas (not just homes, but "possessions"), and I replied to correct your statement. That's all.

Quote:
Originally Posted by testmo View Post
If she is worried about losing the home to OP in divorce etc she needs a prenup or post nup and a lawyer to do it. That doesnt even really protect large assets in texas
You really need to stop talking about an area you clearly are not familiar with. Large assets are easily protected with a good lawyer, and when both parties are in agreement.
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Old 11-17-2013, 09:23 PM
 
Location: Westbury
3,283 posts, read 5,425,530 times
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So pre nups post nups are a rock solid iron clad protection of assets? How long ago did you go to law school.

The mcc is tied to the home and mortgage not marital status
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