The Arkansas Development Finance Authority created its Mortgage Credit Certificate Program for the residents of Arkansas, to help make homeownership of new and existing homes more affordable for individuals and families with low to moderate income, especially first-time homebuyers.


An MCC is a dollar-for-dollar tax credit for first time, low-to-moderate income homebuyers. The certificate is issued by ADFA and allows qualifying, taxpaying homebuyers to claim a tax credit of up to 50 percent of the mortgage interest paid per year, capped at $2,000 annually. The credit may be claimed for the life of the loan as long as the home is their primary residence.

The ADFA MCC is "FREE" to qualified applicants using one of ADFA's first mortgage loan products (ADFA Move-Up or ADFA Move-Up Choice).


Tell us the city you want to live in, and we’ll show you a list of trusted lenders in your area and help you get started on your homeownership journey.

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 $270,000.
  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".

Customer Story

Josh and Kara Autrey of Van Buren, AR received an ADFA Mortgage Credit Certificate (ADFA MCC).

Single Family Staff

Denise Wells
Assistant Single Family Program Manager
Dean Norman
Single Family Underwriter
Virginia Wright
Single Family Underwriter
Leslie Quisenberry
Single Family Underwriter

Additional Programs

You may be able to combine this program with the following ADFA programs.


The "ADFA Move-Up" Loan Program offers homebuyers an affordable mortgage. And when using an “ADFA Move-Up” loan, borrowers may be eligible to combine it with other ADFA single family home buying incentives.


The "ADFA Move-Up Choice" Single Family Loan Program offers the homebuyer a grant of 4% of their loan amount to cover down payment and closing costs.