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REVISED 10/14/2019 ADFA
ARKANSAS DEVELOPMENT FINANCE AUTHORITY
HOMEOWNERSHIP DIVISION
PROGRAM GUIDELINES
• ADFA Move-Up
• Down Payment Assistance (DPA)
• Arkansas Dream Down-payment Initiative (ADDI)
• Mortgage Credit Certificate (MCC)
900 West Capitol Ave, Suite 310
Little Rock, AR 72201
https://homeloans.arkansas.gov
Like Us on Facebook: ARHomeFinancing
Eligible Property Types
• Single Family Detached
• Planned United Developments (PUDs): Townhomes or Condos
• Manufactured Housing: allowed only on government loan products (FHA, VA, USDA)
• Duplex: FHA
REVISED 10/14/2019 2 ADFA
PROGRAM GUIDELINES Product Information ADFA “Move Up” 1st Mortgage
Conventional Loan, Freddie Mac HFA Advantage :
• Fixed Rate / 30 Year Amortization / Purchase Only
• Arkansas Conventional Conforming Loan Limit—$484,350 (no jumbo)
Government Loans (VA, RD, FHA):
• Fixed Rate / 30 Year Amortization / Purchase Only
• Follow each specific program guidelines: VA, RD, and FHA.
• FHA Conforming Loan Limit—$314,827
Master Server ServiSolutions— A Division of the Alabama Housing Finance Authority:
In Alabama: 334.244.9200 Toll-free: 800.325.2432 FAX: 334.244.9214
Eligible Borrower Borrowers must qualify for the 1st Mortgage “Move Up” in order to use ADDI or DPA.
ADDI and DPA are not available independently without ADFA “Move-Up” 1st Mortgage.
Conventional Loans:
• Freddie Mac HFA Advantage Conventional (only)
Borrower (s) must not have an ownership interest in more than two financed
residential properties, including the subject property, as of the Note Date, or for
Construction Conversion and Renovation Mortgages as of the Effective Date of
Permanent Financing. Bulletin: September 16, 2019.
• Primary Residence only.
• Can be used as a stand-alone program without down-payment assistance.
Governmental Loans:
• Follow each specific program guidelines: VA, RD, and FHA.
• Primary Residence only.
Rate
Rate is set daily and sent to all participating lenders. Rate subject to change without notice.
First-Time Homebuyer • No first-time homebuyer requirement for MOVE-UP, 1st Mortgage Loan.
• When combined with any ADFA down-payment assistance other requirements may apply.
See ADFA Mortgage Credit Certificate Programs for additional information.
MCC Eligible Yes, MCC may be paired with Move-Up, even if 1st mortgage is not paired with any down-payment
assistance program.
See ADFA Mortgage Credit Certificate Programs, for additional information.
NEW! Income Limits ADFA Move-Up, ALL 1st Mortgage Loans—Qualifying Income Limit Maximum of $97,720
(140% AMI). Effective for Reservations after 10/01/2019
Secondary Market, 1st Mortgage Loan
7460 Halcyon Pointe Drive, Suite 200
Montgomery, AL 36117 P.O. Box 242967
Montgomery, AL 36124-2967
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REVISED 10/14/2019 3 ADFA
PROGRAM GUIDELINES Affordable Income
Subsidy Grant (AIS)
ADFA Move Up 1st Mortgage HFA Advantage CONVENTIONAL Loans only:
Borrowers at or below 50% of the Area Median Income (“AMI) Limits as published by Freddie Mac are
eligible for an AIS grant in the amount of $2,500 and borrowers above 50% of AMI but at or below
80% AMI are eligible for an AIS Grant of $1,500. AIS Grant funds must be reserved.
Income limits for the AIS Grant are determined by the county location of the home:
Home Possible Income & Property Eligibility
There is no repayment of the AIS Grant—it is a grant subsidy. The grant can be applied to the bor-
rower’s down payment and/or closing cost. No Cash back.
• If the borrower qualifies, they may receive the AIS Grant, ADFA Arkansas Dream Down-payment
Initiative or ADFA Down Payment Assistance, and a Mortgage Credit Certificate. These programs
are stackable.
• While using ADFA Move Up 1st Mortgage HFA Advantage Conventional Loan on combination
with 2nd Soft Mortgage ADDI, the AIS Grant must be utilized, it is a requirement.
• A reservation must be made separately for the AIS Grant, after reserving the 1st Mortgage.
• AIS Grant funds might be used for down payment, closing cost, and pre-paid items only.
• Must be disclosed separately as “AIS” in Section L of Closing Disclosure.
• The AIS Grant should be shown as a GIFT (AIS Grant) on the 1003, and LPA.
Caution: Inclusion of MCC monthly amount in qualifying income may hinder borrower’s ability to get
AIS grant.
Maximum Loan-To-Value
(LTV) & Total-Loan-To-
Value (TLTV)
Governmental Loans:
Follow each Program Guidelines for specific Maximum Loan-to-Value & Total-Loan-To-Value.
Conventional Loans:
Freddie Mac HFA Advantage
Minimum Median
Credit Score
• All applicants are subject to Credit Score requirements, including Non-Occupant Borrowers Co-
Signers.
• One credit score suffices if it meets the minimum score requirement.
Maximum Loan Amount Arkansas Conventional Conforming Loan Limit—$484,350 (no jumbo)
FHA Conforming Loan Limit—$314,827
Secondary Market, 1st Mortgage Loan
Maximum LTV Ratio Maximum TLTV Ratio
97 % 105%
FHA VA RD HFA Advantage Conventional
Credit Score 660 640 640 640
REVISED 10/14/2019 4 ADFA
FHA VA RD HFA Advantage Conventional
DTI 45% 45% 45% 45%
PROGRAM GUIDELINES Homebuyer Education • Freddie Mac HFA Advantage Conventional Loans if both borrowers are first time homebuyers, at
least one borrower is required to take the course.
Follow Specific product guidelines for other 1st Mortgages: VA, FHA, RD.
Credit Smart is acceptable to meet Freddie Mac education requirement for the 1st Mort-
gage requirement.
For more information, if using down payment assistance, see ADDI.
Eligible Purpose • Single family detached , 1-Unit Primary Residence, and PUDs (Condos & Townhomes).
• VA, FHA, RD or Freddie Mac HFA Advantage Conventional loans types allowed.
• Manufacturing housing allowed only on government loan products (FHA, VA, USDA).
• Duplex allowed on FHA loans, follow FHA program guidelines.
See Eligible Borrower section on page 2 for additional information.
Debt-To-Income Ratio
Maximum (DTI)
• Debt-To-Income ratio, including DPA 2nd Mortgage payment, must not exceed 45%.
Non-Occupant
Borrowers
Co-Signers
• Non-Occupant borrowers Co-Signers allowed only on FHA Loans.
• Co-Signers must sign the Note, and TRID Documents only. Cannot take title or be on the
Warranty Deed.
• ADFA does not request income documents on the Co-Signer.
• Non-Occupant borrowers Co-Signers must meet credit score guideline as well.
Manufactured Housing
Manufactured housing is allowed under FHA Agency guidelines, and subject to the State of Arkan-
sas. The following guidelines apply:
Required Lien Perfection Documentation
• Collection of a DFA retirement confirmation document: Confirmation Letter from the AR Depart-
ment of Finance & Administration stating the mobile home certificate of title has been cancelled.
Secondary Market, 1st Mortgage Loan
Minimum Credit Score Maximum DTI Maximum LTV Maximum CLTV
640 (660; FHA) 45% Per FHA Program Guidelines
State of Arkansas Manufactured
Housing Requirements
ServiSolutions Loan Delivery &
Purchase Guidelines, page 34
See Manufactured Housing Requirements for each program.
REVISED 10/14/2019 5 ADFA
PROCEDURES Lock-In ALL program reservations and rate Lock-Ins are from 9:00 am to 7:00 pm, Monday– Friday with
exception of ADFA holidays. https://adfa.mitas.com/mitas/
Origination Loan originated in accordance with program guidelines, Freddie Mac guidelines, and LPA recommen-
dations. (Running Loan Product Advisor as soon as possible is suggested). No ADFA Exhibits re-
quired for origination.
NEW! Income
Verification
Move-Up, Income Limit Maximum of $97,720 (140% AMI), Effective 10/01/2019:
Employed—ADFA asks for the Verification of Employment (VOE), last 2 paystubs (continuous 30
days), and the Loan Approval (AUS).
Self-employed—ADFA requires last 2 years signed tax documents, 1099’s, and a self-prepared
signed YTD P&L.
Discount Points Not Allowed.
Reservations ALL program reservations are from 9:00 am to 7:00 pm
May be reserved or ‘locked’ at application in our Reservation System, keep in mind the following:
• If ADFA has not received a Compliance File within 15 days from reservation/lock date the
reservation will automatically be cancelled. Once a Compliance File is received, ADFA will
issue a conditional commitment to the lender. DPA’s will remain the same as before.
Effective for Reservations on 10/01/2019 and after
• Closing Package reviewed by ADFA:
If ADFA has not received a Closing Package within 60 days from reservation/lock
date, the reservation will automatically be cancelled.
Documents are required to be uploaded using MITAS as a whole package with separat-
ed Index Sheets (preferred), or individually upload without Index sheets.
**See pages 21-32 from New Reservation Presentation HERE.**
Underwriting • HFA Advantage Conventional through Loan Product Advisor (LPA) “ACCEPT/ELIGIBLE” recom-
mendation is required. LPA A Minus Offering is not allowed.
• VA, FHA through LPA “ACCEPT/ELIGIBLE” or DU “APPROVE/ELIGIBLE” recommendation.
• RD through GUS.
**For ALL Loans Manual Underwriting is not allowed**
Delivery Fees • $200—Funding Fee
• This fee is paid directly by the lender and net funded at time of loan purchase. It is not to be
charged to the borrower.
• $71.50—Tax Servicing Fee
• ADFA pays 1.75% SRP on Conventional, FHA and RD loan; and 1.25% SRP on VA loans when
sold to the Master Servicer.
• Lenders are allowed to charge up to a 1% Origination Fee—OPTIONAL
Secondary Market, 1st Mortgage Loan
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REVISED 10/14/2019 6 ADFA
PROCEDURES Pre-Closing Compliance package submission required prior to closing.
Income Documentation, see Income Verification, on previous page.
Funding
Originating lender will fund the 1st and 2nd mortgage, and AIS Grant, if applicable, at closing.
Points & Fees
ADFA is exempt from ATR-QM (Ability to Repay and Qualified Mortgage Rule).
Delivery • 70-day purchase timeline remains in effect from date loan is reserved or ‘locked’ in our Reser-
vation System.
If ADFA has not received a closing package, then the 30 day extension will automatically
go into effect and the $375 extension fee will be netted out at purchase.
• ServiSolutions will not purchase after 70-days of closing and will send back to Lender.
Uniform Closing
Dataset (UCD)
As per ServiSolutions Guidelines.
Appraisal Requirements
As per ServiSolutions Guidelines.
Mortgage Insurance
Coverage
(HFA Advantage
Conventional)
Freddie Mac HFA Advantage Conventional monthly mortgage insurance automatically ends when
LTV drops to 78%. Single Premium, available, coverage is Life of Loan with no additional cost.
Single Premium Mortgage Insurance is allowed, it can be paid by the borrower, Lender or Seller. If
it is paid by the Lender or Seller it must be included in the maximum interested party contribution of
3% of the sales price.
Subordinate Financing Must be an approved Affordable Second. Lenders are responsible for verifying that the subordinate
financing used meets “Accept/Eligible” from LPA; or recommendation “Approved/Eligible” from DU.
Post-Closing Standard post-closing documents must be submitted to ADFA.
Original Recorded Documents must be submitted to ServiSolutions.
ADFA Compliance Team
Contact Information
Secondary Market, 1st Mortgage Loan
95% 97%
90.01% to 95% = 16%
85.01% to 90% = 12% 18%
80.01% to 85% = 6%
Denise Wells—Single Family Assistant Manager
(501) 682-5466
Virginia Wright—Single Family Compliance
(501) 682-5923
Dean Norman—Single Family Compliance
(501) 682-5935
Leslie Quisenberry—Single Family Compliance
(501) 682-5930
REVISED 10/14/2019 7 ADFA
PROCEDURES ADFA Training
Resources
Arkansas Development Finance Authority
900 W Capitol Ave, Suite 310
Little Rock, AR 72201
(501) 682-5900
ADFA Forms, under SINGLE FAMILY
ADFA OUTREACH TEAM:
Loan Delivery &
Purchase Guidelines
Link: ServiSolutions Loan Delivery & Purchase Guidelines
Miscellaneous The information contained herein (including but not limited to any description of ADFA programs and
products, eligibility criteria, interest rates, fees and all other loan terms) is subject to change without
notice. Participants are responsible to find the latest information and guidelines.
(The information contained in this product description does not modify, replace or substitute infor-
mation in the Freddie Mac Selling and Loan Product Advisor Guides and or related release notes or
supplements. Always check for Freddie Mac, ServiSolutions or ADFA announcements and updates
for current underwriting guidelines, changes and/or updates).
Secondary Market, 1st Mortgage Loan
Tim Wooldridge—Director of Outreach
Northeast Arkansas
(870) 926-8758
Kyle Putman—Outreach Specialist
Northwest Arkansas
(501) 551-1276
Issac Morales—Outreach Specialist
Central & South Arkansas
(501) 765-6543
Derrick Rose—Marketing & Outreach
Little Rock
(501) 682-5904 [email protected]
REVISED 10/14/2019 8 ADFA
PROGRAM GUIDELINES ADDI Affordable Soft 2nd Mortgage: 5-year term, pro-rated, forgiven at 1/60th per month.
• Borrowers may be able to receive 10% of purchase price, up to $10,000.
• Can receive cash back at closing for POC items.
• Can not be used for repairs, principal reduction, or to pay debt to qualify.
• ADDI is not eligible for refinancing.
• MCC Eligible and may be paired in assistance with ADDI. Follow MCC restrictions.
• ADDI cannot be combined with DPA.
Eligible Borrower ***Borrowers must qualify for the 1st Mortgage “Move Up” in order to use ADDI.***
• Purchase must be used as Primary Residency.
• ADDI must be approved by ADFA prior to closing.
First-Time Homebuyer • No first-time homebuyer requirement for ADDI.
See ADFA Mortgage Credit Certificate Programs for additional information.
Rate
Not applicable.
Homebuyer Education • All borrowers must take a HUD approved 8 hour pre-purchase homebuyer education class or an
e-home online course through a HUD-Approved homebuyer counseling agency as well.
• Homebuyer Education Course class must be done prior to closing.
Online, 50% OFF, self-paced course link below:
HUD-Approved Homebuyer Education Online Course
Income Limits Household income limits apply by 80% Area Medium Income or below by county:
HUD HOME Program Income Limits.
Eligible Purpose • Single family detached , 1-Unit Primary Residence, and PUDs (Condos & Townhomes).
• VA, FHA, RD or Freddie Mac HFA Advantage Conventional loans types allowed.
• Manufacturing housing allowed on FHA, VA or RD Loans.
• Borrower (s) can own other property.
Purchase Price / Sales
Price
ADDI—Purchase Price Limit of $250,000
Forgivable 2nd Soft/Silent Mortgage Loan
ADDI Can not be used for principal reduction; but it can used for up to 5% down-payment on a
Conventional, and up to 3.5% on FHA, plus closing cost & POC items. On VA / RD, ADDI may
only be used for closing cost & POC items, no down-payment.
REVISED 10/14/2019 9 ADFA
PROGRAM GUIDELINES Non-Occupant
Borrowers
Co-Signers
• Non-Occupant borrowers Co-Signers allowed only on FHA Loans.
• Co-Signers must sign the Note, and TRID Documents only. Cannot take title or be on the
Warranty Deed.
• ADFA does not request income documents on the Co-Signer.
• Non-Occupant borrowers Co-Signers must meet credit score guidelines as well.
Tax Returns Employed—ADFA requires the most current year of signed 1040’s and W2’s. If 1040 is not available,
Lender must provide an IRS Transcript for that year. If W2’s are not available, Lender must provide an
IRS RECORD OF ACCOUNT.
Self-Employed—ADFA requires last 2 years signed tax documents, W-2/1099’s and a self-prepared,
signed YTD P&L.
Income Verification • Verification of Employment (VOE).
• Most recent, continuous 30 days, Pay-Stubs.
CHILD SUPPORT: Provide proof of the amount of child support rec'd for each child.
• You may email your inquiry form, with the borrower's name and SS#, to ARKANSAS CHILD SUPPORT ENFORCEMENT at:
[email protected] OR [email protected]
• Send ADFA the e-mail you sent to AR CHILD SUPPORT ENFORCEMENT, together with their response. If there is child support, need proof of the monthly amount rec’d by the borrower. This can be documented by a twelve month printout or a recent court order agreement.
Fees • ADFA allows a $50 lender application fee to borrower, not required.
• Borrowers are able to receive cash back at closing to cover POC items.
• ADFA pays for up to two HQS Inspections. Any additional inspections cannot be paid by the bor-
rower, and will not be paid by ADFA.
Borrower is not allow to be charged for ADDI HQS Inspections.
Awards Letters • Compliance package submission required prior to closing.
Awards letter sent prior to closing ([email protected])
Funding
Originating lender will fund the 1st mortgage and 2nd mortgage at closing.
Forgivable 2nd Soft/Silent Mortgage Loan
Tax Returns: Yes, for ADDI you do need signed tax returns, together with W2’s, from
anyone 18 or older who will live in the house.
REVISED 10/14/2019 10 ADFA
PROGRAM GUIDELINES HQS Inspection • U.S. Department of Housing & Urban Development requires HQS Inspection.
• Lender is allowed to pick its own inspector (Business License & W-2 must be approved prior se-
lection of your own inspector).
• ADFA pays for Initial & Final Inspection, with a maximum of two inspections (up to $125 + millage
for each inspection).
• ADFA must dispatch inspectors in order to pay them.
• Compliance File must be approved by ADFA prior to ordering HQS Inspection—Files are
reviewed on the order they are received.
When using ADDI, please allow up to 45 days for closing. See ADFA ADDI
Subordinate Financing Must be an approved Affordable Second. Lenders are responsible for verifying that the subordinate
financing used meets “Accept/Eligible” from LPA; or recommendation “Approved/Eligible” from DU.
Miscellaneous The information contained herein (including but not limited to any description of ADFA programs and
products, eligibility criteria, interest rates, fees and all other loan terms) is subject to change without
notice. Participants are responsible to find the latest information and guidelines.
(The information contained in this product description does not modify, replace or substitute infor-
mation in the Freddie Mac Selling and Loan Product Advisor Guides and or related release notes or
supplements. Always check for Freddie Mac, ServiSolutions or ADFA announcements and updates
for current underwriting guidelines, changes and/or updates).
Forgivable 2nd Soft/Silent Mortgage Loan
REVISED 10/14/2019 11 ADFA
PROGRAM GUIDELINES DPA Affordable 2nd Mortgage (repayable): 10-year amortization term.
• Borrowers are able to receive from $1,000 up to $10,000 for down payment assistance, closing
cost, cash back at closing for POC items, and up to $100.
• Can not be used for repairs or to pay debt to qualify.
• Borrowers may increase down payment thus reducing 1st Mortgage amount.
• No penalty for pre-payment.
• DPA is not available for refinance.
• MCC may be paired in assistance with DPA. Follow MCC guidelines
• DPA cannot be combined with ADDI.
• DPA is not available independently without ADFA “Move-Up” 1st Mortgage.
Eligible Borrower ***Borrowers must qualify for the 1st Mortgage “Move Up” in order to use DPA.***
• Purchase must be used as Primary Residency
First-Time Homebuyer
No first-time homebuyer requirement for DPA, 2nd Mortgage Loan
Rate
Matches 1st Mortgage Rate (ADFA Move-Up).
Homebuyer Education • DPA, itself, does not have an education course requirement.
• If both borrowers are first time homebuyers, and they are using HFA Conventional as their 1st
Mortgage, Freddie Mac Credit Smart course is acceptable.
Income Limits
No Income Limits, but borrower is subject to the 1st Mortgage Loans Qualifying Income Limit Maxi-
mum of $97,720 (140% AMI).
Tax Returns
DPA—have no income limits, ADFA does not require any Tax Information.
Income Verification
No income verification required for DPA, 2nd Mortgage.
HQS Inspection
No HQS Inspection required for DPA.
Fees • ADFA allows a $50 lender application fee to borrower, not required.
• Borrowers are able to receive cash back at closing to cover POC items.
Pre-Closing • Compliance submission package not required.
• Awards letter sent prior to closing ([email protected])
Repayable 2nd Mortgage Loan
REVISED 10/14/2019 12 ADFA
PROGRAM GUIDELINES Funding
Originating lender will fund the 1st mortgage and 2nd mortgage at closing.
Subordinate Financing Must be an approved Affordable Second. Lenders are responsible for verifying that the subordinate
financing used meets “Accept/Eligible” from LPA; or recommendation “Approved/Eligible” from DU.
Miscellaneous The information contained herein (including but not limited to any description of ADFA programs and
products, eligibility criteria, interest rates, fees and all other loan terms) is subject to change without
notice. Participants are responsible to find the latest information and guidelines.
(The information contained in this product description does not modify, replace or substitute infor-
mation in the Fannie Mac Selling and Loan Product Advisor Guides and or related release notes or
supplements. Always check for Freddie Mac, ServiSolutions or ADFA announcements and updates
for current underwriting guidelines, changes and/or updates).
Repayable 2nd Mortgage Loan
REVISED 10/14/2019 13 ADFA
PROGRAM GUIDELINES Term Credit may be claimed for the life of the loan, as long as the home is used as primary residence.
Purpose The Mortgage Credit Certificate was authorized by congress in 1984 Tax Reform Act to help lower-
income families afford a home. The program allows homebuyers to claim a dollar-for-dollar tax credit
for a portion of mortgage interest paid per year, up to $2,000.
The certificate is issued by ADFA and allows qualifying homebuyers to claim a tax credit of up to 50%
of the mortgage interest paid per year.
Amount Up to 50% of mortgage interest up to $2,000 tax credit per year that reduces the amount of federal
income tax paid by the borrower, giving more available income to qualify for a mortgage loan and
assist with house payments.
Tax Credit
Advantages Borrower may go to their employer and adjust their W-4’s to reflect the anticipated credit. This will
lower the borrower's federal tax withholdings and increase the monthly take home pay.
$2,000 Tax Credit ÷ 12 = $166.66 monthly results in additional income that can be used for qualifying
purposes.
First-Time Homebuyer First-time homebuyer is defined as a borrower who has NOT had an ownership interest in a
principal residence at any time during the three year period prior to the date of closing.
This ruling applies to a non-borrower spouse or any co-occupant.
Dollar-per-Dollar Tax Credit
Tax credit is equal to the
annual mortgage interest
paid multiplied by the
MCC tax credit rate of
50%.
REVISED 10/14/2019 14 ADFA
PROGRAM GUIDELINES Qualifications All Borrower (s) and Household Occupants must qualify by one of the following:
1. Must be a first-time homebuyer (No principal residence ownership within last 3 years).
2. Veteran or Spouse of a Veteran.
3. Purchasing a home in a Targeted County.
Targeted County A targeted county is a qualified census tract or an area of chronic economic distress as designated by
the IRS. If property is located in a targeted county, the first time homebuyer requirement does not ap-
ply.
IRS Filling Form 1040 “U.S. Individual Income Tax Return”— Borrower must claim the tax credit when filling
this form annually.
Form 8396 “Mortgage Interest Credit”— Borrower must use this form to claim this tax credit.
Borrower may itemize if preferred.
Income Limits /
Qualifying Income
Household income limits apply. MCC can be classified as “Other Income”.
Caution: Inclusion of MCC monthly amount in qualifying income may hinder
borrower’s ability to get AIS grant.
If the Borrower (s) have no tax liability, the MCC income cannot be used as qualifying income.
See the ADFA Mortgage Credit Certificate (MCC) Program-Income Limits List.
Maximum Purchase
Price Limit
$270,000
Income Verification In non-targeted counties:
• Most current year tax returns with W-2’s, signed by borrower (s) unless self-employed.
• Self-employed borrower (s) requires 2 years signed tax returns, W-2/1099’s and YTD P&L.
Non-Occupant
Borrowers /
Co-Signers
• Can sign the LE, CD and Note only. Cannot take title or be on the Warranty Deed.
• Can be on the LPA.
• MCC Co-signers are allowed and do not need to meet the first-time homebuyer requirement if
they are not occupying the property. ADFA does not require income verification documents from
co-signer.
Fees Lender Fee— Lender may charge up to $150 per each MCC transaction.
Issuance Fee—when using a participating lender’s fixed-rate and fully amortizing first mortgage 1/2%
(.50) of the loan amount as issuance fee will be charged for MCC. Payable to ADFA.
ADDI funds may be used for MCC fees. Other fees may apply if combining with any other ADFA Prod-
ucts.
Issuance Fee waived on MCC when using / paired with “ADFA Move-Up” 1st Mortgage Loan.
Issuance Fee waived on MCC when used for Veterans, or Spouse of Veteran without using / paring
with “ADFA Move-Up” 1st Mortgage Loan (Form DD214 required).
Dollar-per-Dollar Tax Credit
REVISED 10/14/2019 15 ADFA
PROGRAM GUIDELINES Recapture Tax For the Recapture Tax to apply, ALL of the following conditions must be met:
I. Home is sold or disposed of within 9 years of being purchased, for reasons other than death, and
II. There is a capital gain on the sale of the home, and
III. Household income for the year in which you sell your home exceeds at least 5% each year, which
is the federal recapture tax limits.
We estimate that 97% of borrowers will not be subject to the Recapture Tax.
Disclosures MCC CAN’T reduce your Federal Income Tax if you don’t owe any taxes!
ADFA or any associate representing ADFA are not tax professionals and cannot give tax
advice. ADFA recommends that borrowers seek the advice of a qualified tax professional when
deciding whether or not to take advantage of an MCC. For more information regarding this
provision, please contact the IRS or consult a tax professional.
Note: ADFA will not reimburse MCC borrower’s that are required to pay the Recapture Tax.
MCC IS A SELF-REPORTING TAX
Miscellaneous The information contained herein (including but not limited to any description of ADFA programs and
products, eligibility criteria, interest rates, fees and all other loan terms) is subject to change without
notice. Participants are responsible to find the latest information and guidelines.
(The information contained in this product description does not modify, replace or substitute infor-
mation in the Freddie Mac Selling and Loan Product Advisor Guides and or related release notes or
supplements. Always check for Freddie Mac, ServiSolutions or ADFA announcements and updates
for current underwriting guidelines, changes and/or updates).
Dollar-per-Dollar Tax Credit
REVISED 10/14/2019 16 ADFA
REVISED 10/14/2019 17 ADFA
REVISED 10/14/2019 18 ADFA
REVISED 10/14/2019 19 ADFA
REVISED 10/14/2019 20 ADFA
ARKANSAS DEVELOPMENT FINANCE AUTHORITY
AFFORDABLE INCOME SUBSIDY GRANT
2019 FREDDIE MAC INCOME LIMITS
FIPS 2019
5-digit key
County Name
2019 Area Median Income (AMI)
Very low-income - 50% AMI
Low-income - 80% AMI
05001 Arkansas $52,100 $26,050 $41,680
05003 Ashley $52,100 $26,050 $41,680
05005 Baxter $52,100 $26,050 $41,680
05007 Benton $68,600 $34,300 $54,880
05009 Boone $52,100 $26,050 $41,680
05011 Bradley $52,100 $26,050 $41,680
05013 Calhoun $52,100 $26,050 $41,680
05015 Carroll $52,800 $26,400 $42,240
05017 Chicot $52,100 $26,050 $41,680
05019 Clark $55,600 $27,800 $44,480
05021 Clay $52,100 $26,050 $41,680
05023 Cleburne $57,000 $28,500 $45,600
05025 Cleveland $51,000 $25,500 $40,800
05027 Columbia $55,100 $27,550 $44,080
05029 Conway $53,600 $26,800 $42,880
05031 Craighead $53,100 $26,550 $42,480
05033 Crawford $52,500 $26,250 $42,000
05035 Crittenden $65,200 $32,600 $52,160
05037 Cross $52,100 $26,050 $41,680
05039 Dallas $52,100 $26,050 $41,680
05041 Desha $52,100 $26,050 $41,680
05043 Drew $52,100 $26,050 $41,680
05045 Faulkner $69,800 $34,900 $55,840
05047 Franklin $50,700 $25,350 $40,560
05049 Fulton $52,100 $26,050 $41,680
05051 Garland $60,000 $30,000 $48,000
05053 Grant $69,800 $34,900 $55,840
05055 Greene $56,500 $28,250 $45,200
05057 Hempstead $52,100 $26,050 $41,680
05059 Hot Spring $54,000 $27,000 $43,200
05061 Howard $52,100 $26,050 $41,680
05063 Independence $52,100 $26,050 $41,680
05065 Izard $52,100 $26,050 $41,680
05067 Jackson $52,100 $26,050 $41,680
05069 Jefferson $51,000 $25,500 $40,800
05071 Johnson $52,100 $26,050 $41,680
05073 Lafayette $52,100 $26,050 $41,680
05075 Lawrence $52,100 $26,050 $41,680
05077 Lee $52,100 $26,050 $41,680
05079 Lincoln $51,000 $25,500 $40,800
05081 Little River $57,200 $28,600 $45,760
05083 Logan $52,100 $26,050 $41,680
05085 Lonoke $69,800 $34,900 $55,840
05087 Madison $68,600 $34,300 $54,880
REVISED 10/14/2019 21 ADFA
05089 Marion $52,100 $26,050 $41,680
05091 Miller $57,200 $28,600 $45,760
05093 Mississippi $52,100 $26,050 $41,680
05095 Monroe $52,100 $26,050 $41,680
05097 Montgomery $52,100 $26,050 $41,680
05099 Nevada $52,100 $26,050 $41,680
05101 Newton $52,100 $26,050 $41,680
05103 Ouachita $52,100 $26,050 $41,680
05105 Perry $69,800 $34,900 $55,840
05107 Phillips $52,100 $26,050 $41,680
05109 Pike $52,100 $26,050 $41,680
05111 Poinsett $53,100 $26,550 $42,480
05113 Polk $52,100 $26,050 $41,680
05115 Pope $53,600 $26,800 $42,880
05117 Prairie $52,100 $26,050 $41,680
05119 Pulaski $69,800 $34,900 $55,840
05121 Randolph $52,100 $26,050 $41,680
05125 Saline $69,800 $34,900 $55,840
05127 Scott $52,100 $26,050 $41,680
05129 Searcy $52,100 $26,050 $41,680
05131 Sebastian $52,500 $26,250 $42,000
05133 Sevier $53,600 $26,800 $42,880
05135 Sharp $52,100 $26,050 $41,680
05123 St. Francis $52,100 $26,050 $41,680
05137 Stone $52,100 $26,050 $41,680
05139 Union $53,200 $26,600 $42,560
05141 Van Buren $52,100 $26,050 $41,680
05143 Washington $68,600 $34,300 $54,880
05145 White $56,200 $28,100 $44,960
05147 Woodruff $52,100 $26,050 $41,680
05149 Yell $52,100 $26,050 $41,680
ARKANSAS DEVELOPMENT FINANCE AUTHORITY
AFFORDABLE INCOME SUBSIDY GRANT
2019 FREDDIE MAC INCOME LIMITS
FIPS 2019
5-digit key
County Name
2019 Area Median Income (AMI)
Very low-income - 50% AMI
Low-income - 80% AMI
