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 program asks for
- First-time homebuyer — the program sets its own definition
- The home is occupied as a primary residence
- CAUTION/
- A home in Arkansas
It doesn’t cover
- 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.
Where it applies
Arkansas’s homesThe homes in Arkansas
- 70% single-familysingle-family
- 1.9% townhousetownhouse
- 6.5% 2–4 units2–4 units
- 10.5% 5+ unitscondo & apartment buildings (5+ units)
- 11.2% mobile & othermobile home & other
$188,000
Arkansas median home value
39.6%
built before 1980
U.S. Census Bureau, ACS 2024 5-year.
How to apply
How to applyTwo steps, in this order
Contact Arkansas Development Finance Authority (ADFA) to reserve funds
Funds are reserved with the provider and are subject to availability.
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 homebuyer can take it to a lender or housing counselor.
Questions about this program
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 homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. CAUTION/.
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 homebuyers 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. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.
Also for Arkansas homebuyersOther programs open to Arkansas homebuyers
- FHLB Dallas Homebuyer Equity Leverage Partnership (HELP)Up to $20,000
- Southern Bancorp Wealth Builders for Everyone Down Payment Assistance ProgramUp to $12,000
- Arkansas Dream Downpayment Initiative (ADDI)Up to $10,000
Whether two programs can be combined is up to each agency. Ask before you apply.
All 71 programs for ArkansasProgram terms are set by Arkansas Development Finance Authority (ADFA) and can change; confirm on the official site before you apply.