Arkansas Development Finance Authority (ADFA) Programs:
Updated October 1, 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, ADDI (HOME) funds, 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 ADFA's homeownership pages and 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 typically waived for veterans or when purchasing in ADFA‑designated targeted counties.
Offerings: 30‑year fixed mortgages via government channels or Freddie Mac HFA Advantage conventional options. ADFA posted example rates on 09/25/2026: StartSmart government 30‑year 5.875% and Freddie Mac HFA Advantage 30‑year 6.125%. Rates change daily; confirm with a participating lender. ADFA rates & 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 (ADFA program guidelines). See ADFA program guidelines: ADFA Program Guidelines (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 $500,000; targeted county caps are lower and listed in ADFA county tables. See ADFA purchase price & 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 up to $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 (POC) may be allowed per ADFA DPA terms. See full DPA 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. See ADFA program guidelines for underwriting details: ADFA Program Guidelines.
Arkansas Dream Down Payment Initiative (ADDI):
Description: ADFA administers ADDI (HOME) second‑mortgage assistance that may be forgivable over an affordability period for qualifying lower‑income first‑time buyers. ADFA's FY2023 annual report documents ADDI awards (examples up to $25,000 in FY2023); availability and caps depend on HOME allocations and funding rounds. 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 commonly runs a DPA that has been described as up to six percent of the purchase price (commonly capped at $10,000 on the City DPA flyer). Confirm current caps and application windows at the City program PDFs: Little Rock DPA flyer (2025).
Also note: Little Rock operates a separate CDBG‑DR Homebuyer Assistance Program (HAP) under some disaster recovery allocations; that HAP package lists a maximum assistance of $15,000 (or 8% of purchase price) in its application package. These are separate funding tracks — check the HAP application package before assuming funds are combinable: Little Rock CDBG‑DR HAP (application package).
Jonesboro
Homeownership Assistance Program: The City of Jonesboro CDBG homeownership assistance can award forgivable assistance (commonly up to $5,000) 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
Home‑buyer Assistance Program: Pine Bluff's Economic & Community Development program commonly offers up to $2,000 for down payment plus up to $3,000 for eligible closing costs for income‑eligible buyers (prepaid items generally excluded). Check the Pine Bluff ECD program page for current details and income limits: Pine Bluff ECD.
Additional Information:
- Mortgage Credit Certificate (MCC): ADFA administers an MCC program that 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 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 tool.
- VA Loans: VA‑guaranteed loans can offer 0% down to eligible veterans and active service members. Confirm eligibility and the Certificate of Eligibility process at the VA: 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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