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ADFA Mortgage Credit Certificate (MCC) Program

Arkansas Development Finance Authority (ADFA) · Arkansas

Last verified
See what you qualify forOfficial program site →
Assistance

$2,000

The maximum the program publishes — not an offer

Price cap

$250,000

Highest purchase price the program allows

Repayment

Tax credit

Not a loan, so there is nothing to repay

What is ADFA Mortgage Credit Certificate (MCC) Program?

ADFA Mortgage Credit Certificate (MCC) Program is a mortgage credit certificate for homebuyers in Arkansas, administered by Arkansas Development Finance Authority (ADFA).

  • The ADFA Mortgage Credit Certificate (MCC) is a dollar-for-dollar federal income tax credit for first-time, low-to-moderate-income Arkansas homebuyers. The certificate allows qualifying homebuyers to claim a federal tax credit on a portion of the annual mortgage interest paid, capped at $2,000 per year, for the life of the loan.
  • Annual federal income tax credit on a percentage of mortgage interest paid, capped at $2,000 per year for the life of the loan.

How much assistance does it provide?

ADFA Mortgage Credit Certificate (MCC) Program offers up to $2,000 in assistance.

  • Amounts are the program's published maximums, not an offer — Arkansas Development Finance Authority (ADFA) determines any individual award.

Do you have to pay it back?

ADFA Mortgage Credit Certificate (MCC) Program is a tax credit rather than a loan, so there is nothing to repay.

  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

ADFA Mortgage Credit Certificate (MCC) Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • CAUTION/UNCONFIRMED: ADFA's dedicated MCC page is still live but the MCC is no longer listed in ADFA's current Homeownership navigation menu (only StartSmart, Move-Up, and DPA appear), and the homeloans.arkansas.gov/adfa-mcc link redirects to the main Homeownership page. The page references the older HomeToOwn name and a 50% credit figure (older summaries cite 35%). Verify current availability and exact credit percentage with an ADFA-approved lender before relying on this program. Must be a first-time homebuyer; home must be primary residence; eligible loan types are fixed-rate fully amortizing loans. Cannot be combined with a tax-exempt mortgage revenue bond / MBS program.

The program excludes

  • Purchases above the $250,000 price cap

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

ADFA Mortgage Credit Certificate (MCC) Program sets its income limit as follows: Household income cannot exceed ADFA MCC maximum limits (vary by county/household size).

  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

ADFA Mortgage Credit Certificate (MCC) Program caps the purchase price at $250,000.

Where does it apply?

ADFA Mortgage Credit Certificate (MCC) Program serves buyers purchasing anywhere in Arkansas.

How do you apply?

Applications for ADFA Mortgage Credit Certificate (MCC) Program go through Arkansas Development Finance Authority (ADFA), which publishes the current terms and the application steps on its own site.

  1. Contact Arkansas Development Finance Authority (ADFA) to reserve funds

    Funds are reserved with the provider and are subject to availability.

  2. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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