The Arkansas Development Finance Authority (ADFA) recently introduced a program that offers a Federal Tax Credit for First-Time-Homebuyers. It is called the Mortgage Credit Certificate (MCC) Program. The MCC Program is offered by the Internal Revenue Service to encourage borrowers to buy their first home.
For borrowers that qualify, if offers them up to a $2,000 Federal tax credit for each year that the house they are buying is used as their principal residence. To qualify borrowers must be first-time-homebuyers, except in targeted counties; must meet household income limits, which vary by county; and not exceed a purchase price of $225,000. The MCC is not part of the home financing, but rather an incentive the IRS offers to get first-time-homebuyers to buy a home.