Tax credit up to 35% of mortgage interest paid, capped at $2,000/year. First-time, low-to-moderate income.
Arkansas offers one of the highest Mortgage Credit Certificate rates in the country at 35% — meaning 35% of your annual mortgage interest becomes a dollar-for-dollar federal tax credit. On a $150,000 mortgage at 6.5%, that's roughly $3,400 in tax credits in year one alone.
The MCC stacks with ADFA's DPA programs, creating a combination of upfront assistance plus ongoing annual savings. Over the life of a 30-year mortgage, the cumulative tax credit value can exceed $50,000. This is one of the most overlooked wealth-building tools available to Arkansas homebuyers.
We'll show you how to combine ADFA Mortgage Credit Certificate with other programs to maximize your free money — personalized to your ZIP code and income.