First-Time Home Buyer Programs in Arkansas

Arkansas Development Finance Authority (ADFA) Programs:

StartSmart First-Time Homebuyer Loan Program:

Eligibility: Targets first-time buyers (no ownership in past 3 years) unless in 30 IRS-designated low-income counties, or veterans/spouses.
Offerings: 30‑year fixed-rate mortgage (FHA, VA, USDA, or Freddie Mac HFA Advantage) at ~1% below market with no prepayment penalty.
Requirements:

• Minimum credit score of 640.
• Purchase price limit of $425,000.
• Household income caps vary by county and household size (e.g., approx. $142k) – see the New American Funding Arkansas First‑Time Homebuyer Guide for details.
• Homebuyer education required for conventional loans unless in targeted counties.

ADFA Down Payment Assistance Program (DPA):

Benefits: $1,000–$15,000 for down payment/closing costs via a 10-year second mortgage matching the first mortgage rate; available with StartSmart or Move-Up programs .
Eligibility: Must use an ADFA first mortgage; income and purchase price caps per program guidelines.

Arkansas Dream Down Payment Initiative (ADDI):

Description: Up to 10% of purchase price (max $25,000) as a **silent second mortgage**, forgiven after 5 years (≤ $15k) or 10 years (> $15k) .
Requirements: Income must be ≤ 80% AMI; must pair with an ADFA mortgage.

Local Programs:

Little Rock

Down Payment Assistance Program: Provides up to 6% of purchase price (max $10,000) as a forgivable second loan over 5 years. Income-based and first-time buyer oriented; home counseling and inspections required. Currently not accepting new applications (check city updates) .

Jonesboro

Homeownership Assistance Program: Grants 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: Provides up to $2,000 for down payment and $3,000 for closing costs to low/moderate-income buyers as a 5-year deferred loan. $500 buyer contribution and 5-year residency required .

Additional Information:

• Mortgage Credit Certificate (MCC): Offers up to 35% credit on annual mortgage interest (max $2,000); availability may be limited .
• USDA & VA Loans: Zero-down payment options in rural areas and for veterans/active military.
• FHA Loans: 3.5% down payment; 580+ credit qualifies (10% down if below).