City Celebrates National Homeownership Month by Kicking-Off 2004 Mortgage Credit Certificate Program

AUSTIN, TX: President Bush designated June, "National Homeownership Month" for the third year in a row, as a way to strengthen his challenge to public and private entities to work together to boost minority homeownership. In joining the celebration, the City of Austin, through its public non-profit, The Austin Housing Finance Corporation (AHFC), announced the kick-off of its $22 million Mortgage Credit Certificate (MCC) program for income-eligible first-time homebuyers.

The program utilizes the Private Activity Bond authority received through the Texas Bond Review Board to promote the dream of homeownership.

Approximately 200 Austin families will benefit from the federal tax credit. The new program provides the following credit: 30 percent of the interest paid on the home mortgage under $115,000; 25 percent of the interest paid on mortgages between $115,000 and $140,000; and 20 percent for mortgages in excess of $140,000 all with a maximum benefit of $2,000 per year.

Under the MCC program, a "first-time homebuyer" is defined as someone who has not owned a home in the last three years. Homes must be located within the Austin City Limits and the purchaser's income must not exceed $71,100 for families of one or two persons; or, $81,765 for families of three or more persons.

Maximum purchase price for homes are $210,375 for existing or newly constructed homes. All newly constructed homes must be S.M.A.R.T Housing^TM certified.

Eligible homebuyers must qualify for a mortgage and the MCC program through a local participating lender. Lenders who are participating in the MCC Program include: American Bank, NA, CTX Mortgage Company, Charter Funding, Cypress Mortgage, DHI Mortgage, Guarantee Residential Lending, Liberty Mortgage, Wells Fargo Home Mortgage, and WR Starkey Mortgage.

In addition to the MCC benefit, income-eligible homebuyers may also qualify for Down Payment Assistance through the AHFC.

The City of Austin and the AHFC continue to promote the dream of homeownership in a variety of ways in addition to the MCC and Down Payment Assistance programs. The AHFC is building new single-family homes made available to first time homebuyers in collaboration with the Austin Realtor Community. Other housing programs include home modifications for the disabled and elderly, and other homeowner assistance programs designed to preserve older housing stock through rehabilitation.

For specific information on the MCC program, direct calls to Martin Gonzalez at 974-3103.

The City of Austin is committed to compliance with the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act of 1973, as amended. Reasonable modifications and equal access to communications will be provided upon request. Please call 974-3100 (voice) or 974-3102 (TDD) for assistance. This project is made possible by funding from HUD through the City of Austin.

CONTACT: Julie Beggs, (512) 974-3121 (voice)