ADFA MCC - MORTGAGE CREDIT CERTIFICATE
Program Funds Currently unavailable

HOW TO QUALIFY

1. Must be applied for prior to closing your home loan.
2. Must be a first-time homebuyer, a veteran or veteran's spouse, or purchasing a home in a targeted county which is an area of chronic economic distress as designated by the IRS. Targeted counties include: Bradley, Calhoun, Chicot, Clark, Cleburne, Columbia, Conway, Crawford, Crittenden, Cross, Dallas, Desha, Drew, Jefferson, Lafayette, Lee, Lincoln, Madison, Mississippi, Monroe, Nevada, Ouachita, Perry, Phillips, Prairie, St. Francis, Scott, Searcy, White, Woodruff, and Yell.
3. Household income cannot exceed maximum limits.
4. Purchase price of a home cannot exceed $300,000.
5. Home must be the primary residence.
6. Must use an approved lender.

ADFA MCC is not part of the financing package to purchase a home. It is an incentive for first-time homebuyers to help them purchase a home.

When using an ADFA MCC with a participating lender's first mortgage product, an issuance fee of 0.5% of the loan amount will be charged.

All loans using an ADFA MCC must be fixed rate and fully amortizing. The borrower claims the credit when they file their Form 1040 tax return annually. They may itemize deductions and use Form 8396 "Mortgage Interest Credit" to claim credit.

The borrower can receive immediate benefit from the MCC Program by going to their employer and filing a revised W-4 Federal Tax Withholding Form to increase their exemptions. This will reduce the Federal tax withholdings and increase the borrower's monthly take-home pay.

Note: We recommend that borrowers seek the advice of a qualified tax preparer when deciding whether or not to take advantage of an MCC.

"Recapture Tax" may apply if the borrower sells the house within the first 9 years. We estimate 96% of borrowers will not be subject to "recapture tax".