The state of Texas has taken one more step toward assisting its veterans. Thanks to the Texas Mortgage Credit Program, which is being overseen by the Texas Department of Housing and Community Affairs, veterans will now receive extra assistance when it comes time to buy a home.

"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," Texas Governor Rick Perry is quoted as saying in an Austin Biz Journals article.

In early February, the state released $30 million in funds to go toward assisting veterans with purchasing a home in Texas. Through the Texas Veterans Mortgage Credit Program, eligible applicants can receive up to $2,000 per year in mortgage discounts. In addition, the Texas Department of Housing and Community Affairs has made $120 million worth of mortgage loans available in order to help approximately 772 households with purchasing a home.

Through the program, homebuyers who ear up to 115% of the median family income for their area can receive a 30% deduction on the annual interest that they pay on their mortgage loan, with a cap of $2,000 per year. With the benefit lasting for the entire life of the mortgage loan, however, homebuyers can potentially enjoy a very significant savings through the program.

The Texas Veterans Mortgage Credit Program is the same as the Texas Mortgage Credit Program, but Veterans who received an honorable discharge can have the first-time homebuyer status requirement waived in order to enjoy a tax credit. In order to qualify for this waiver, however, veterans must contract to make a purchase no later than April 30 and they must close on the deal by June 30. They must also meet the following qualifications:

•    Served in active duty
•    Have never had a mortgage financed through a mortgage revenue bond program
•    Must adhere to the purchase price limit requirements on a non-targeted area

As an added bonus, the $2,000 tax credit can be used along with the one-time federal Tax Credit for first time homebuyers.

To learn more about the Texas Mortgage Credit Program, call the Texas Department of Housing and Community Affairs at 1-800-792-1119.

Jim Olenbush is the owner of a residential brokerage specializing in Austin real estate.  He manages a team of experienced real estate agents and has been involved in local real estate since 1997.