Special tax credit available to first-time home buyers | News
LITTLE ROCK, Ark. (March 22, 2012) - The Mortgage Credit Certificate program allows first-time home buyers to take advantage of a special federal income tax credit.
The amount of the credit is tied to a local formula that every city with an MCC program must follow. An MCC credit, which can total $2,000 or more, reduces the borrower's federal tax liability by an amount tied to how much one pays in annual mortgage interest.
Both the borrower's income and the purchase price of the home must fall within established guidelines.
THV's Ashley Blackstone sat down with Murray Harding of the Arkansas Development Finance Authority (ADFA) to discuss how potential home buyers can go about qualifying for this tax credit. Click on the video link!
Here is a list of general requirements Harding says applicants should keep in mind:
- There are maximum income limits, which vary by locality and family size.
- You must be a first-time home buyer, which means you must not have had any kind of ownership interest in a principal residence during the past three years.
- The purchase price of the house cannot exceed $225,000.
- Applicants must be approved for the MCC prior to closing the loan purchase of the home.
The following lenders have signed up for and have been approved to participate in the ADFA MCC Program as of February 7, 2012:
Bank of the Ozarks
Bank of England dba Eng Lending
Bank of Little Rock Mortgage
Benefit Bank - Ft. Smith
Carroll Mortgage Group
Delta Trust Mortgage
Fairway Independent Mortgage Corp.
First Financial Mortgage
First Arkansas Financial - Sheridan
First Community Bank - Batesville
Metropolitan National Bank
NBA Mortgage Group
Primary Residential Mortgage
Prime Source Mortgage
(Source: Arkansas Development Finance Authority)