Arkansas Development Finance Authority (ADFA) Programs:
Updated July 8, 2026ADFA offers below market 30 year fixed mortgages through StartSmart (first time buyers) and Move Up (repeat or higher income buyers), plus down payment assistance and mortgage tax credits. All ADFA loans must be originated by ADFA approved lenders and many require homebuyer education. Verify current rates, income and purchase limits on the ADFA site and the ADFA county tables before assuming eligibility: ADFA Homeownership.
StartSmart First Time Homebuyer Loan Program:
Eligibility: First time buyers (no ownership in the past 3 years); the first time rule is waived for veterans or when purchasing in ADFA designated targeted counties.
Offerings: 30 year fixed mortgages through government loan channels or Freddie Mac HFA Advantage conventional options. ADFA published example rates (ADFA daily rates): government 30 year StartSmart 5.25% and Freddie Mac HFA Advantage 30 year 5.50% as posted by ADFA on 06/22/2026. Rates change daily; confirm with a participating lender. ADFA rates and programs.
Requirements:
- Household income must meet county specific StartSmart limits. See ADFA StartSmart income and county tables: StartSmart income limits.
- Minimum median credit score: 640. This minimum median score and related credit rules are in the ADFA program guidelines. See ADFA program guidelines. ADFA Program Guidelines (revised 06/10/2025).
- Purchase price limits vary by county and by targeted versus non targeted designation. ADFA program guidelines commonly show a non targeted purchase price limit of about $500,000; targeted county caps are lower and listed in the ADFA county table. See ADFA purchase price and county table.
- Maximum debt to income ratio commonly capped at 45% including DPA payments under ADFA underwriting rules.
- Homebuyer education is required for many loans; targeted county exceptions may apply.
ADFA Down Payment Assistance Program (DPA):
Benefits: ADFA DPA provides between $1,000 and $15,000 for down payment and closing cost assistance as a 10 year subordinate mortgage that generally matches the ADFA first mortgage rate. Cash back for certain borrower paid costs paid outside of closing may be allowed per ADFA DPA terms. See ADFA DPA page for full terms and lender process: ADFA DPA.
Eligibility: Must be paired with an ADFA StartSmart or Move Up first mortgage and meet ADFA income and purchase limits.
Arkansas Dream Down Payment Initiative (ADDI):
Description: ADFA operates an ADDI (HOME) second mortgage that can be forgivable over an affordability period for qualifying low income first time buyers. ADFA documented ADDI assistance up to $25,000 in its FY2023 annual report; availability and caps depend on HOME allocations and change by funding round. Confirm current ADDI rules and availability with ADFA HOME staff. ADFA FY2023 Annual Report (ADDI).
Local Programs (Examples):
Many cities and counties run additional forgivable or deferred assistance for low and moderate income first time buyers. Funding is limited and program caps often change between funding cycles; verify each local site before assuming active funding.
Little Rock
Down Payment Assistance Program: The City of Little Rock runs a DPA program that often uses a percentage of purchase price (commonly up to 6% of purchase price). Some Little Rock program materials list a cap not to exceed $10,000. Confirm current caps and application windows at the City of Little Rock Community Development pages: Little Rock Community Development.
Jonesboro
Homeownership Assistance Program: The City of Jonesboro CDBG program can award up to $5,000 as forgivable assistance to qualifying first time buyers inside city limits; HUD approved counseling is required. See the City of Jonesboro program page: Jonesboro Homeownership Assistance.
Pine Bluff
Homebuyers Assistance Program: The City HOME/CDBG program commonly offers about $2,000 for down payment plus up to $3,000 for closing costs for income eligible buyers. Check the Pine Bluff Economic and Community Development program page for current details and income limits: Pine Bluff ECD.
Additional Information:
- Mortgage Credit Certificate (MCC): ADFA administers an MCC program. An MCC converts a portion of annual mortgage interest into a federal tax credit. MCC issuance, credit rate, and purchase price limits vary by allocation round and availability. Verify ADFA MCC availability with your lender and ADFA: ADFA MCC public notice.
- USDA Loans: USDA Rural Development offers 0% down purchase options in eligible rural areas. Property and household income limits apply. Check property eligibility with the USDA eligibility tool: USDA eligibility.
- VA Loans: VA guaranteed loans can offer 0% down to eligible veterans and active service members. Confirm eligibility and certificate of eligibility requirements at the VA home loan pages: VA Home Loans.
- FHA Loans: FHA generally permits a minimum down payment of 3.5% for borrowers with a 580 credit score and above, though lenders may have overlays. See HUD FHA program information: HUD FHA guidance.
Programs and limits change frequently. Always confirm program details, county tables, and current rates with an ADFA approved lender or the agency contact listed on the program pages.
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