First-Time Home Buyer Programs in Arkansas

Arkansas Development Finance Authority (ADFA) Programs:

ADFA 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 require participation through ADFA approved lenders and most require homebuyer education. Verify current rates, income and purchase limits at ADFA Homeownership and county income limits at ADFA documents for StartSmart.

StartSmart First-Time Homebuyer Loan Program:

Eligibility: First-time buyers (no ownership in the past 3 years), except that the first-time requirement is waived for veterans or when purchasing in ADFA targeted counties.
Offerings: 30-year fixed mortgage through government loan channels or HFA Advantage conventional options. ADFA published example rate: government 30-year StartSmart 5.25% (ADFA rate table, updated May 18, 2026). Rates change often; check ADFA daily rates and talk to a participating lender.
Requirements:

• Household income must meet county-specific StartSmart limits (see ADFA StartSmart income limits by county). StartSmart income limits.
• Minimum median credit score: 640 (ADFA program guidelines).
• Purchase price limit for non-targeted counties: $500,000 (see ADFA program guidelines for targeted county exceptions).
• Homebuyer education required for many loans; targeted-county exceptions may apply.

ADFA Down Payment Assistance Program (DPA):

Benefits: ADFA DPA provides $1,000 to $15,000 for down payment and closing costs as a 10-year second mortgage that matches the ADFA first mortgage rate. Cash back for expenses paid outside closing may be allowed. See ADFA DPA page for full terms and lender process: ADFA DPA.
Eligibility: Must pair 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 is forgivable over an affordability period for qualifying low-income first-time buyers. ADFA materials and annual reports describe ADDI as a forgivable second mortgage commonly capped at $10,000. In some ADFA/HOME materials the assistance is described as a percent of sales price subject to a $10,000 cap; confirm the percent and current availability with ADFA HOME staff. ADFA 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 can pause between program years, so verify each local site before assuming active funding.

Little Rock

Down Payment Assistance Program: City DPA commonly offers up to 6% of the purchase price (not to exceed $10,000) for income eligible first-time buyers, with counseling and property inspection requirements. Confirm current income limits and application windows at the City of Little Rock Community Development pages: Little Rock Community Development.

Jonesboro

Homeownership Assistance Program: City CDBG program that can award up to $5,000 as forgivable assistance (forgivable lien over three years) to qualifying first-time buyers inside city limits; HUD counseling is required. See City of Jonesboro program page: Jonesboro Homeownership Assistance.

Pine Bluff

Homebuyers Assistance Program: City HOME/CDBG program offering amounts commonly in the range of $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 has published MCC program materials and a public notice. An MCC converts a portion of annual mortgage interest into a federal tax credit (commonly up to a cap of $2,000 per year); program credit rates and issuance availability vary by allocation round. Verify ADFA MCC availability and the program credit rate with your lender and ADFA before relying on it. ADFA MCC public notice.
• USDA Loans: USDA Rural Development offers 0% down purchase options in eligible rural areas; property and household income limits apply. Confirm 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 COE requirements at the VA home loan pages: VA Home Loans.
• FHA Loans: FHA permits a minimum down payment of 3.5% for borrowers with credit scores of 580 and above; lenders may require higher scores. See HUD/FHA guidance for details: HUD FHA guidance.

Programs and limits change frequently. Always confirm program details and current rates with an ADFA approved lender or the agency contact listed on the program pages. Seeking Agents connects buyers with Arkansas agents experienced in these programs who compete to offer reduced commissions or added services free for buyers or sellers.

Seeking Agents® connects you with Arkansas agents experienced in these programs who compete to offer reduced commissions or added services—free for buyers/sellers. For lender‑level product confirmation, direct buyers to an approved participating lender listed on the program admin sites.