arkansas development finance authority …€¦ · 22/07/2020 · • manufacturing housing...

REVISED 7/22/2020 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)

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

1 Commerce Way, Suite 602

Little Rock, AR 72202

https://homeloans.arkansas.gov

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ALL FILES ARE REVIEWED IN THE ORDER THEY ARE RECEIVED

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REVISED 7/22/2020 2 ADFA

INDEX

First Mortgage Programs Page

Move-Up 3

Second Mortgage Programs

Arkansas Dream Down-payment Initiative (ADDI) 9

Down Payment Assistance (DPA) 12

MCC

Mortgage Credit Certificate (MCC) 13

Income Limits

Mortgage Credit Certificate (MCC) 16

Arkansas Dream Down-payment Initiative (ADDI) 18

Freddie Mac 20

Resources

Contact Information 22

ARKANSAS DEVELOPMENT

FINANCE AUTHORITY HOMEOWNERSHIP DIVISION



PROGRAM GUIDELINES

Product Information ADFA “Move Up” 1st Mortgage:

Conventional Loan, Freddie Mac HFA Advantage :

• Two Conventional Loan Options, See page 4

• Fixed Rate / 30 Year Amortization / Purchase Only (Available as Stand-Alone)

• Arkansas Conventional Conforming Loan Limit

Government Loans (VA, RD, FHA):

• Fixed Rate / 30 Year Amortization / Purchase Only (Available as Stand-Alone)

• Follow each specific program guidelines: VA, RD, and FHA

• Follow All Conforming Loan Limits for each program

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

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 residen-

tial properties, including the subject property, as of the Note Date.

Bulletin: September 16, 2019.

• Primary Residence only. (Available as Stand-Alone without down-payment assistance)

Eligible Borrower

Governmental Loans:

• Follow each specific program guidelines: VA, RD, and FHA.

• Primary Residence only. (Available as Stand-Alone without down-payment assistance)

NEW! Rate Lock /

Extension Fees

All Loan Reservations must be reserved and closed within 30-Days.

• Lenders must complete the expected closing date on the reservation system, and upload a closing package due within 50-Days of reservation or subject to cancellation.

• 60– Day Rate Lock timeline

• Extension Policy: you only pay the fee if the loan closes, and are able to extend loans for 7,

15, 22, or 30 days at prorated prices that will be netted out at purchase.

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.

Income Limits ADFA Move-Up, ALL 1st Mortgage Loans— Borrower (s) or Co-Borrower (s) Qualifying In-

come* Limit Maximum of $137,000. Effective February24, 2020.

Secondary Market, 1st Mortgage Loan

7460 Halcyon Pointe Drive, Suite 200

Montgomery, AL 36117 P.O. Box 242967

Montgomery, AL 36124-2967

*Income other than base pay does not need to be included if the Borrower (s) or Co-Borrower (s) does not choose to have it considered for repaying

the loan.

tel:334.2449200

tel:800.325.2432

https://guide.freddiemac.com/app/guide/content/a_id/1003267


PROGRAM GUIDELINES


Compliance Review

Requirements

HFA Conventional

& Standard

Conventional

Based on Freddie

Mac Income Limits

AIS INCOME SUBSIDY GRANT IS NOT LONG AVAILABLE: Instead, Two HFA Freddie Mac Conventional Products will be available as follows: 1. “Move-Up Conventional AT and Less Than 80% AMI” (HFA Conventional)

• Borrowers qualifying income at or below 80% AMI

• Lower Interest Rate

• Allow minimum MI coverage (chartered)

• Freddie Mac Home Possible Income Eligibility Tool: Lender must Include a screenshot/print screen showing the property address and income limits. (This serves as a proof that the Lender checked the borrower’s eligibility for this program).

See “ADFA Reservation Pre/Post Closing Presentation” page 76.

Item Included & required in Move-Up Post Closing Checklist.

2. “Move-Up Conventional Greater Than 80% AMI” (Standard Conventional)

• Borrowers qualifying income above 80% AMI

• Slightly Higher Interest Rate

• Standard Mortgage Insurance required. See, Section 4701

ADFA MUST BE NOTIFIED PRIOR TO CLOSING of any reservations made for At or less than 80% AMI, but discovered to be greater than 80% — the rate will be changed to the greater than 80% AMI rate as of the day it was reserved. If ADFA is not notified and the loan closes at the lower rate the loan will be ineligible for purchase by ServiSolutions due to the difference in the MI coverage.

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.

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:

All 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.

Pre-Closing Compliance package: ADDI and MCC

Due by 15-Day from Lock Rate/Reservation

Post-Closing Compliance (closing) package:

MOVE-UP, ADDI, DPA, and MCC Due by 50-Day from Lock Rate/Reservation

Maximum LTV Ratio Maximum TLTV Ratio

97 % 105%

FHA VA RD HFA Advantage Conventional

Credit Score 640 640 640 640

https://sf.freddiemac.com/working-with-us/affordable-lending/home-possible-eligibility-map

https://adfa.arkansas.gov/media/file/ADFA_RESERVATION_PRE__POST-CLOSING_PRESENTATION_2020_1.pdf



PROGRAM GUIDELINES

Debt-To-Income Ratio

Maximum (DTI)

Homebuyer Education • Freddie Mac HFA Advantage Conventional Loans if both borrowers are first time homebuy-

ers, 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

Mortgage requirement. For more information, if using ADDI HBE Course require-

ments, see under ADDI Page 9.

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 3 for additional information.

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 each agency guidelines, and subject to the State of

Arkansas. The following guidelines apply:

Required Lien Perfection Documentation

• Collection of a DFA retirement confirmation document: Confirmation Letter from the AR

Department of Finance & Administration stating the mobile home certificate of title has

been cancelled.


Minimum Credit Score Maximum DTI Maximum LTV Maximum CLTV

640: VA, RD, 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.

FHA VA RD HFA Advantage Conventional

DTI 45.000% 45.000% 45.000% 45.000%

• Debt-To-Income ratio, including DPA 2nd Mortgage

payment, must not exceed 45%.

https://servsol.com/Content/Uploads/servsol.com/files/Loan%20Delivery%20Guidelines_10418_forweb.pdf

https://servsol.com/Content/Uploads/servsol.com/files/Loan%20Delivery%20Guidelines_10418_forweb.pdf


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/

Income Verification Move-Up, Income Limit Maximum of $137,000. Effective February24, 2020.

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

UPDATED! 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 follow-

ing:

• If ADFA has not received a Compliance ADDI or MCC File within 15 days from res-

ervation/lock date the reservation will automatically be cancelled. Once a Compli-

ance File is received, ADFA will issue a conditional commitment to the lender. DPA’s will

remain the same as before.

• Closing Package reviewed by ADFA:

If ADFA has not received a Closing Package within 50 days from reserva-

tion/lock date, the reservation will automatically be cancelled.

Documents are required to be uploaded using MITAS as a whole package with

separated Index Sheets (preferred), or individually upload without Index sheets.

**See pages 21-32 from New Reservation Presentation

Underwriting • HFA Advantage Conventional through Loan Product Advisor (LPA) “ACCEPT/ELIGIBLE”

recommendation is required. LPA A Minus Offering is not allowed.

• VA, FHA through DU “APPROVE/ELIGIBLE” recommendation.

• RD through GUS.

**For ALL Loans Manual Underwriting is not allowed**

Delivery Fees SERVISOLUTIONS 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 FEES

• ADFA pays 1.75% SRP on All loans when sold to the Master Servicer.

• OPTIONAL: Lenders are allowed to charge up to a 1% Origination Fee


https://adfa.mitas.com/mitas/


PROCEDURES Funding

Originating lender will fund the 1st and 2nd mortgage, at closing.

Points & Fees

ADFA is exempt from ATR-QM (Ability to Repay and Qualified Mortgage Rule).

UPDATED! Delivery • 60—Day purchase timeline from date loan is reserved or ‘locked’ in our Reservation Sys-

tem.

If ADFA has not received a closing package, “Extension Policy” will be available

pertaining to lock-in/reservations where you only pay the fee if the loan is pur-

chased. To further benefit from this change, extensions are now available for 7,

15, 22, or 30 days.

• ServiSolutions will not purchase after 70-days of closing and will send back to

Lender.

HFA Conventional

Mortgage Insurance

1. HFA Conventional At and Less than 80% AMI:

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 maxi-

mum interested party contribution of 3% of the sales price.

Follow Freddie Mac Income Limits

2. HFA Conventional Greater than 80% AMI:

Standard Mortgage Insurance required. See, Section 4701

Post-Closing Documents Standard post-closing documents must be uploaded to ADFA by the MITAS Portal.

Original Recorded Documents must be submitted to ServiSolutions.

Loan Delivery &

Purchase Guidelines

Link: ServiSolutions Loan Delivery & Purchase Guidelines


≤ 95% 97%

90.01% to 95% = 16%

85.01% to 90% = 12% 18%

80.01% to 85% = 6%


http://servsol.com/Content/Uploads/servsol.com/files/Loan%20Delivery%20Guidelines_10418_forweb.pdf


PROCEDURES

ADFA Training

Resources

Arkansas Development Finance Authority



(501) 682-5900

ADFA Forms, under SINGLE FAMILY

ADFA OUTREACH TEAM:

Miscellaneous The information contained herein (including but not limited to any description of ADFA pro-

grams 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

information in the Freddie Mac Selling and Loan Product Advisor Guides and or related re-

lease notes or supplements. Always check for Freddie Mac, ServiSolutions or ADFA an-

nouncements and updates for current underwriting guidelines, changes and/or updates).


Tim Wooldridge—Director of Outreach

Northeast Arkansas

(870) 926-8758

[email protected]

Kyle Putman—Outreach Specialist

Northwest Arkansas

(501) 551-1276

[email protected]

Issac Morales—Outreach Specialist

Central & South Arkansas

(501) 765-6543

[email protected]

Derrick Rose—Marketing & Outreach

Little Rock

(501) 682-5904 [email protected]

https://adfa.arkansas.gov/files/


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 cannot 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 additional

down-payment.

https://adfa.homebuyerexpress.org/Account/Partners/Landing.aspx?ReturnUrl=%2f

https://drive.google.com/file/d/0BwlEubde1yIqcEdfendhbEJ6RHgtdUZodWZqVzRSX2YxX2VR/view


PROGRAM GUIDELINES Non-Occupant

Borrowers

Co-Signers

• Non-Occupant 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 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 bor-rower. This can be documented by a twelve month printout or a recent court order agree-ment.

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 borrower, 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.


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.

mailto:[email protected]

mailto:[email protected]

mailto:[email protected]?subject=Award%20Letters


PROGRAM GUIDELINES HQS Inspection • U.S. Department of Housing & Urban Development requires Housing Quality Standards

Inspection.

• Lender is allowed to pick its own inspector (Business License & W-9 must be approved

prior selection of your own inspector).

• ADFA pays for Initial & Final Inspection, with a maximum of two inspections (up to $125 +

mileage for each inspection).

• ADFA must dispatch inspectors in order to pay them.

• Compliance File must be approved by ADFA prior to ordering HQS Inspection

When using ADDI, please allow up to 45 days for closing. See ADFA ADDI




guidelines.






Files are reviewed in the order they are received.

https://adfa.arkansas.gov/media/file/ADDI_Pick_Your_Own_Inspector_1.pdf


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.

• Cannot 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, unless matched with an HFA

Conventional and both borrowers are first time homebuyers, then Freddie Mac Credit

Smart course is required.

Income Limits

No Income Limits for DPA, but borrower is subject to the 1st Mortgage Loans:

Borrower’s Qualifying Income Limit Maximum of $137,000

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])

Funding

Originating lender will fund the 1st mortgage and 2nd mortgage at closing.

Repayable 2nd Mortgage Loan

mailto:[email protected]?subject=Award%20Letters


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 inter-

est 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%.


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 desig-

nated by the IRS. If property is located in a targeted county, the first time homebuyer require-

ment does not apply.

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 cred-

it.

Borrower may itemize if preferred.

Income Limits /

Qualifying Income

Household income limits apply. MCC can be classified as “Other Income”.

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:

• Last continuous 30-Day pay-stubs, VOE’s, 1 year signed tax return with W-2’s.

• Self-employed borrower (s) requires 2 years signed tax returns, W-2/1099’s and YTD P&L.

Targeted:

• Last continuous 30-Day pay-stubs, and VOE’s

• 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 require-

ment 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 mort-

gage .50% (half of one percent) 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 AD-

FA Products.

Re-Issuance Certificate Fee— $150

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 Loan (Form

DD214 required).


https://www.irs.gov/pub/irs-pdf/f1040.pdf

https://www.irs.gov/pub/irs-pdf/f8396.pdf

https://drive.google.com/file/d/0BwlEubde1yIqUUZmbXoycWZ0Wml6Z3JqQlQweXQtSFlJUGlN/view


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.

Pre-Closing Documents MCC Conditional Commitment Checklist, Include all items in this list

Exhibit A Notice to Borrower Potential Recapture

Exhibit B Application for Conditional Commitment

Exhibit C Disclosure

Exhibit I Non-Borrower Occupant Income Affidavit (Maybe)

Note: Other Forms might be required

Post-Closing Documents MCC Post Closing Checklist, Include all items in this list

Exhibit E Borrowers Closing Affidavit, Signed date on Exhibit B, and check (a) or (b)

Exhibit F Seller Affidavit, Seller Signs

Exhibit G Lender Closing Certificate, Lender Signs

Exhibit P Determining Recapture Tax

1. Fill in Closing Dates, and type Targeted or Non-Targeted

2. Recapture Calculation = 6.25% X Loan Amount, Same number in all 3 blanks

• County Income Limit, Select corresponding County

**Exhibit P & Country Income Limit go together**

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 pro-

fessional when deciding whether or not to take advantage of an MCC. For more infor-

mation regarding this provision, please contact the IRS or consult a tax professional.

ADFA will not reimburse MCC borrower’s that are required to pay the Recapture Tax.




guidelines.






MCC is a Self-Reporting Tax


PAGE 1 OF 2 .


MORTGAGE CREDIT CERTIFICATE (MCC)

2020 INCOME LIMITS

INCOME LIMITS BY COUNTY AND HOUSEHOLD SIZE, EFFECTIVE 08/01/2020

N=NON-TARGETED PURCHASE PRICE LIMIT - $270,000

T=TARGETED

N / T COUNTY HOUSEHOLD 1-2 MEMBERS HOUSEHOLD 3 OR MORE

N Arkansas $63,000 $73,500

N Ashley $63,000 $73,500

N Baxter $63,000 $73,500

N Benton $73,600 $84,640

N Boone $63,000 $73,500

T Bradley $73,200 $85,400

T Calhoun $73,200 $85,400

N Carroll $65,640 $76,580

T Chicot $73,200 $85,400

T Clark $73,200 $85,400

N Clay $63,000 $73,500

T Cleburne $73,200 $85,400

N Cleveland $63,120 $73,640

T Columbia $73,200 $85,400

T Conway $73,200 $85,400

N Craighead $71,040 $82,201

T Crawford $73,200 $85,400

T Crittenden $81,480 $95,060

T Cross $73,200 $85,400

T Dallas $73,200 $85,400

T Desha $73,200 $85,400

T Drew $73,200 $85,400

N Faulkner $72,200 $83,030

N Franklin $63,000 $73,500

N Fulton $63,000 $73,500

N Garland $70,819 $81,442

N Grant $70,379 $80,936

N Greene $70,440 $82,180

N Hempstead $63,000 $73,500

N Hot Spring $66,360 $77,420

N Howard $63,000 $73,500

N Independence $65,760 $76,720

N Izard $63,000 $73,500

N Jackson $63,000 $73,500

T Jefferson $73,200 $85,400

N Johnson $63,000 $73,500

T Lafayette $73,200 $85,400

N Lawrence $63,000 $73,500


MCC PROGRAM INCOME LIMITS PAGE 2 OF 2 .

INCOME LIMITS BY COUNTY AND HOUSEHOLD SIZE, EFFECTIVE 08/01/2020

N=NON-TARGETED PURCHASE PRICE LIMIT - $270,000

T=TARGETED

N / T COUNTY HOUSEHOLD 1-2 MEMBERS HOUSEHOLD 3 OR MORE

T Lee $73,200 $85,400

T Lincoln $73,200 $85,400

N Little River $65,400 $76,300

N Logan $63,000 $73,500

N Lonoke $72,200 $83,030

T Madison $88,320 $103,040

N Marion $63,000 $73,500

N Miller $70,659 $81,258

T Mississippi $73,200 $85,400

T Monroe $73,200 $85,400

N Montgomery $63,000 $73,500

T Nevada $73,200 $85,400

N Newton $63,000 $73,500

T Ouachita $73,200 $85,400

T Perry $86,640 $101,080

T Phillips $73,200 $85,400

N Pike $63,000 $73,500

N Poinsett $63,000 $73,500

N Polk $63,000 $73,500

N Pope $64,920 $75,740

T Prairie $73,200 $85,400

N Pulaski $72,200 $83,030

N Randolph $63,000 $73,500

T St. Francis $73,200 $85,400

N Saline $72,200 $83,030

T Scott $73,200 $85,400

T Searcy $73,200 $85,400

N Sebastian $65,040 $75,880

N Sevier $67,200 $78,400

N Sharp $63,000 $73,500

N Stone $63,000 $73,500

N Union $66,120 $77,140

N Van Buren $63,000 $73,500

N Washington $73,600 $84,640

T White $73,200 $85,400

T Woodruff $73,200 $85,400

T Yell $73,200 $85,400


PAGE 1 OF 2 .


ARKANSAS DREAM DOWNPAYMENT INITIATIVE (ADDI)/HOME PROGRAM

2020 INCOME LIMITS

HUD HOME PROGRAM INCOME LIMITS, EFFECTIVE 07/01/2020

NUMBER OF PERSONS/MAXIMUM HOUSEHOLD INCOME AT 80% OF MEDIAN INCOME

COUNTY NAME 1 2 3 4 5 6 7 8

Arkansas 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Ashley 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Baxter 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Benton 41,250 47,150 53,050 58,900 63,650 68,350 73,050 77,750

Boone 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Bradley 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Calhoun 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Carroll 30,650 35,000 39,400 43,750 47,250 50,750 54,250 57,750

Chicot 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Clark 32,350 36,950 41,550 46,150 49,850 53,550 57,250 60,950

Clay 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Cleburne 33,450 38,200 43,000 47,750 51,600 55,400 59,250 63,050

Cleveland 29,500 33,700 37,900 42,100 45,500 48,850 52,250 55,600

Columbia 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Conway 30,600 35,000 39,350 43,700 47,200 50,700 54,200 57,700

Craighead 33,150 37,900 42,650 47,350 51,150 54,950 58,750 62,550

Crawford 30,350 34,700 39,050 43,350 46,850 50,300 53,800 57,250

Crittenden 38,050 43,450 48,900 54,300 58,650 63,000 67,350 71,700

Cross 30,350 34,700 39,050 43,350 46,850 50,300 53,800 57,250

Dallas 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Desha 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Drew 30,200 34,500 38,800 43,100 46,550 50,000 53,450 56,900

Faulkner 40,450 46,200 52,000 57,750 62,400 67,000 71,650 76,250

Franklin 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Fulton 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Garland 35,000 40,000 45,000 49,950 53,950 57,950 61,950 65,950

Grant 36,250 41,400 46,600 51,750 55,900 60,050 64,200 68,350

Greene 32,900 37,600 42,300 46,950 50,750 54,500 58,250 62,000

Hempstead 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Hot Spring 31,000 35,400 39,850 44,250 47,800 51,350 54,900 58,450

Howard 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Independence 30,700 35,100 39,500 43,850 47,400 50,900 54,400 57,900

Izard 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Jackson 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Jefferson 29,500 33,700 37,900 42,100 45,500 48,850 52,250 55,600

Johnson 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Lafayette 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Lawrence 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450


ADDI PROGRAM INCOME LIMITS PAGE 2 OF 2 .

HUD HOME PROGRAM INCOME LIMITS, EFFECTIVE 07/01/2020

NUMBER OF PERSONS/MAXIMUM HOUSEHOLD INCOME AT 80% OF MEDIAN INCOME

COUNTY NAME 1 2 3 4 5 6 7 8

Lee 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Lincoln 29,500 33,700 37,900 42,100 45,500 48,850 52,250 55,600

Little River 30,550 34,900 39,250 43,600 47,100 50,600 54,100 57,600

Logan 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Lonoke 40,450 46,200 52,000 57,750 62,400 67,000 71,650 76,250

Madison 41,250 47,150 53,050 58,900 63,650 68,350 73,050 77,750

Marion 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Miller 35,500 40,550 45,600 50,650 54,750 58,800 62,850 66,900

Mississippi 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Monroe 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Montgomery 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Nevada 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Newton 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Ouachita 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Perry 40,450 46,200 52,000 57,750 62,400 67,000 71,650 76,250

Phillips 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Pike 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Poinsett 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Polk 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Pope 30,350 34,650 39,000 43,300 46,800 50,250 53,700 57,200

Prairie 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Pulaski 40,450 46,200 52,000 57,750 62,400 67,000 71,650 76,250

Randolph 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

St. Francis 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Saline 40,450 46,200 52,000 57,750 62,400 67,000 71,650 76,250

Scott 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Searcy 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Sebastian 30,350 34,700 39,050 43,350 46,850 50,300 53,800 57,250

Sevier 31,400 35,850 40,350 44,800 48,400 52,000 55,600 59,150

Sharp 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Stone 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Union 30,900 35,300 39,700 44,100 47,650 51,200 54,700 58,250

Van Buren 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Washington 41,250 47,150 53,050 58,900 63,650 68,350 73,050 77,750

White 32,050 36,600 41,200 45,750 49,450 53,100 56,750 60,400

Woodruff 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

Yell 29,400 33,600 37,800 42,000 45,400 48,750 52,100 55,450

HUD Reviews the income limits annually for all 75 counties.


PAGE 1 OF 2 .

ARKANSAS DEVELOPMENT FINANCE AUTHORITY FREDDIE MAC HFA ADVANTAGE CONVENTIONAL PROGRAM

2020 INCOME LIMITS

INCOME LIMITS BY COUNTY, EFFECTIVE 07/12/2020

FIPS 5-DigitKey Country Name 2020 Area Median

Income (AMI) Low-income -

80% AMI 2019 Area Median

Income (AMI) AMI change from

2019 to 2020

05001 Arkansas 52500 42000 52100 400

05003 Ashley 52500 42000 52100 400

05005 Baxter 52500 42000 52100 400

05007 Benton 71400 57120 68600 2800

05009 Boone 52500 42000 52100 400

05011 Bradley 52500 42000 52100 400

05013 Calhoun 52500 42000 52100 400

05015 Carroll 54700 43760 52800 1900

05017 Chicot 52500 42000 52100 400

05019 Clark 57700 46160 55600 2100

05021 Clay 52500 42000 52100 400

05023 Cleburne 59700 47760 57000 2700

05025 Cleveland 52600 42080 51000 1600

05027 Columbia 52500 42000 55100 -2600

05029 Conway 54600 43680 53600 1000

05031 Craighead 60700 48560 53100 7600

05033 Crawford 53300 42640 52500 800

05035 Crittenden 66900 53520 65200 1700

05037 Cross 54200 43360 52100 2100

05039 Dallas 52500 42000 52100 400

05041 Desha 52500 42000 52100 400

05043 Drew 53900 43120 52100 1800

05045 Faulkner 72300 57840 69800 2500

05047 Franklin 49100 39280 50700 -1600

05049 Fulton 52500 42000 52100 400

05051 Garland 63900 51120 60000 3900

05053 Grant 72300 57840 69800 2500

05055 Greene 58700 46960 56500 2200

05057 Hempstead 52500 42000 52100 400

05059 Hot Spring 55300 44240 54000 1300

05061 Howard 52500 42000 52100 400

05063 Independence 54800 43840 52100 2700

05065 Izard 52500 42000 52100 400

05067 Jackson 52500 42000 52100 400

05069 Jefferson 52600 42080 51000 1600

05071 Johnson 52500 42000 52100 400

05073 Lafayette 52500 42000 52100 400

05075 Lawrence 52500 42000 52100 400


PAGE 2 OF 2 .

HFA ADVANTAGE CONVENTIONAL PROGRAM

INCOME LIMITS BY COUNTY, EFFECTIVE 07/12/2020

FREDDIE MAC

FIPS 5-DigitKey Country Name 2020 Area Median

Income (AMI) Low-income -

80% AMI 2019 Area Median

Income (AMI) AMI change from

2019 to 2020

05077 Lee 52500 42000 52100 400

05079 Lincoln 52600 42080 51000 1600

05081 Little River 69200 55360 57200 12000

05083 Logan 52500 42000 52100 400

05085 Lonoke 72300 57840 69800 2500

05087 Madison 71400 57120 68600 2800

05089 Marion 52500 42000 52100 400

05091 Miller 69200 55360 57200 12000

05093 Mississippi 52500 42000 52100 400

05095 Monroe 52500 42000 52100 400

05097 Montgomery 52500 42000 52100 400

05099 Nevada 52500 42000 52100 400

05101 Newton 52500 42000 52100 400

05103 Ouachita 52500 42000 52100 400

05105 Perry 72300 57840 69800 2500

05107 Phillips 52500 42000 52100 400

05109 Pike 52500 42000 52100 400

05111 Poinsett 60700 48560 53100 7600

05113 Polk 52500 42000 52100 400

05115 Pope 54100 43280 53600 500

05117 Prairie 52500 42000 52100 400

05119 Pulaski 72300 57840 69800 2500

05121 Randolph 52500 42000 52100 400

05125 Saline 72300 57840 69800 2500

05127 Scott 52500 42000 52100 400

05129 Searcy 52500 42000 52100 400

05131 Sebastian 53300 42640 52500 800

05133 Sevier 56000 44800 53600 2400

05135 Sharp 52500 42000 52100 400

05123 St. Francis 52500 42000 52100 400

05137 Stone 52500 42000 52100 400

05139 Union 55100 44080 53200 1900

05141 Van Buren 52500 42000 52100 400

05143 Washington 71400 57120 68600 2800

05145 White 57200 45760 56200 1000

05147 Woodruff 52500 42000 52100 400

05149 Yell 52500 42000 52100 400


CONTACT INFORMATION

Compliance Team Email Phone

Denise Wells, Compliance Manager [email protected] (501) 682-5466

Dean Norman, Underwriter [email protected] (501) 682-5935

Leslie Quisenberry, Underwriter [email protected] (501) 682-5930

Outreach Team / Training

Tim Wooldridge, Director of Outreach, NEA [email protected] (870) 926-8758

Kyle Putman, NWA Outreach [email protected] (501) 551-1276

Issac Morales, Central & South Outreach [email protected] (501) 765-6543

Communication & Marketing

Derrick Rose, Public Information Manager [email protected] (501) 682-5904

Homeownership Division

Robert Arrington, Director of

Homeownership & Public Finance [email protected] (501) 682-5900

MITAS Website / Reservation System https://adfa.mitas.com/mitas

General Ongoing File Reservation

Questions [email protected]

ARKANSAS DEVELOPMENT

FINANCE AUTHORITY HOMEOWNERSHIP DIVISION



(501) 682-5900


https://adfa.mitas.com/mitas