First-Time Home Buyer Programs in Arkansas

Arkansas Development Finance Authority (ADFA) Programs:

ADFA offers below-market 30-year fixed-rate mortgages through programs like StartSmart (for first-time buyers) and Move-Up (repeat/higher-income), plus down payment assistance (DPA) and tax credits. All require homebuyer education (via approved courses) and participation through ADFA-approved lenders. Verify current rates, income/purchase limits, and availability at adfa.arkansas.gov/homeloans/ or income limits PDF (effective 2025–2026).

StartSmart First-Time Homebuyer Loan Program:

Eligibility: First-time buyers (no ownership in past 3 years), except in 30 IRS-targeted low-income counties (e.g., Bradley, Chicot, Crittenden, Jefferson, etc.) or veterans/spouses.
Offerings: 30-year fixed-rate mortgage (FHA, VA, USDA, or Freddie Mac HFA Advantage) at below-market rates (~5.00% for government loans as of early 2026) with no prepayment penalty.
Requirements:

• Household income must meet county-specific limits (varies by size; e.g., non-targeted often $76,000–$88,000 for 1–2 persons, higher in targeted areas up to $106,000+—see current PDF).
• Minimum credit score: 640.
• Purchase price limit: $500,000.
• Homebuyer education required (for conventional loans; waived in targeted counties for some).

ADFA Down Payment Assistance Program (DPA):

Benefits: $1,000–$15,000 for down payment/closing costs as a 10-year second mortgage (matches first mortgage rate; repayable on sale/refinance; cash back allowed for expenses paid outside closing).
Eligibility: Must pair with ADFA StartSmart or Move-Up first mortgage; meet program income/purchase limits.

Arkansas Dream Down Payment Initiative (ADDI):

Description: Up to 10% of purchase price (max ~$10,000) as a silent second mortgage (0% interest, no payments), forgivable after 5 years (or longer for higher amounts).
Requirements: Income ≤80% AMI; must pair with ADFA mortgage; low/moderate-income focus.

Local Programs (Examples):

City programs provide additional forgivable/deferred assistance—often for low/moderate-income first-time buyers with education/counseling requirements. Funding limited; verify local sites for 2026 status.

Little Rock

Down Payment Assistance Program: Up to 6% of purchase price (max $10,000) as forgivable second loan after 5 years. Income-based (e.g., $51,950–$97,900 by household size); first-time buyers; requires counseling/inspections. Check city site for application availability.

Jonesboro

Homeownership Assistance Program: Up to $5,000 in forgivable assistance (after 3 years occupancy) for low/moderate-income first-time buyers within city limits. HUD standards and counseling required.

Pine Bluff

Homebuyers Assistance Program: Up to $2,000 for down payment + $3,000 for closing costs as a 5-year deferred loan ($500 minimum buyer contribution; 5-year residency required). Targets low/moderate-income buyers.

Additional Information:

• Mortgage Credit Certificate (MCC): Federal tax credit up to 35% of annual mortgage interest (max $2,000/year); availability may be limited or periodic—check ADFA for current rounds.
• USDA Loans: 0% down in eligible rural Arkansas areas; income limits apply.
• VA Loans: 0% down for eligible veterans/active-duty military.
• FHA Loans: 3.5% minimum down (580+ credit; 10% if below 580).

Programs and limits change—always confirm with an ADFA-approved lender. Seeking Agents® connects you with Arkansas agents experienced in these programs who compete to offer reduced commissions or added services—free for buyers/sellers!