Arkansas First-Time Homebuyer Programs | The Lenders Network

This program offers homebuyers, an affordable mortgage. And when using an ADFA Move-Up loan, borrowers may be eligible to combine it with other ADFA single-family home buying incentives.

ADFA Homeownership and Down Payment Assistance Programs make purchasing a home more affordable for low-to-moderate income families and individuals. For eligible borrowers, these programs can greatly reduce the out-of-pocket expense to the buyer.

First Mortgage (FHA, VA, USDA, Conventional)

(rates subject to change without notice)

30-year fixed-rate with no prepayment penalty

The conventional conforming loan limit in Arkansas is $424,100.

This program offers homebuyers, an affordable mortgage. And when using an ADFA Move-Up loan, borrowers may be eligible to combine it with other ADFA single-family home buying incentives.

Features

  • 30-year fixed-rate mortgage
  • No mortgage prepayment penalty
  • Can be combined with other ADFA programs

 

Eligibility

  • Maximum home purchase price of $424,100
  • Debt-to-income ratio of 45% or less for FHA, VA and rural development loans
  • Debt-to-income ratio of 45% to 50% for conventional loans
  • Education classes required for first-time homebuyers using a conventional loan

 

How it works

The ADFA Move-Up loan program is for all home buyers, not just first-time buyers. It is a great fit for low-income borrowers or borrowers with a low credit score. You will have to work with a lender that is ADFA-approved.

AFDA Down Payment Assistance Program (DPA)

You can receive up to $10,000 in assistance to be used towards your down payment and closing costs. The ADFA financial assistance comes in the form of a 10-year second mortgage which may not be required to be repaid.

Features

  • Provides up to $10,000 for down payment and closing costs
  • Down payment assistance is repaid as a 10-year second mortgage

 

Eligibility

  • Can only be used with an ADFA Move-Up program loan

 

How it works

Like all of the ADFA homebuyer programs, they are not just limited to first-time homebuyers. To find out if you qualify you should first speak to a lender to make sure you qualify for a mortgage loan.

Arkansas Dream Down Payment Initiative (ADDI)

Low-income families in Arkansas may be eligible to receive up to 10% of the purchase price of a home in assistance to be used towards the down payment. As with the ADFA program, the assistance comes in the form of a second mortgage that is forgivable over the course of five years.

Features

  • Provides down payment assistance of up to 10% of the home purchase price, with a maximum of $10,000
  • The down payment assistance is a no-payment, forgivable loan

 

Eligibility

  • Must be used with an ADFA Move-Up Program loan
  • Must attend a homebuyer education class
  • Must meet income requirements
  • Maximum $250,000 home purchase price
  • Must have a home inspection

 

How it works

The ADDI doesn’t need to be paid back, so if you qualify for it, it’s a better deal than the down payment assistance program, which must be paid back (at a low interest rate).

ADFA mortgage credit certificate

The ADFA MCC Program is a dollar-for-dollar tax credit for first time, low-to-moderate income homebuyers. The certificate is issued by ADFA and allows qualifying homebuyers to claim a tax credit of up to 50% of the mortgage interest paid per year.

Features

  • Provides a federal tax credit of up to $2,000
  • Can be claimed for the life of the home loan as long as it’s your primary residence
  • Can be combined with all ADFA programs
  • The mortgage credit certificate (MCC) is free if you have an ADFA mortgage

 

Eligibility

  • Must be a first-time homebuyer, a veteran or veteran’s spouse, or you must purchase a home in a targeted county: Bradley, Calhoun, Chicot, Clark, Cleburne, Columbia, Conway, Crawford, Crittenden, Cross, Dallas, Desha, Drew, Jefferson, Lafayette, Lee, Lincoln, Madison, Mississippi, Monroe, Nevada, Ouachita, Perry, Phillips, Prairie, St. Francis, Scott, Searcy, White, Woodruff and Yell
  • The home price must not exceed $270,000
  • The home must be your primary residence
  • Meet the income limits

 

How it works

The MCC is unique in that it doesn’t help you with upfront home financing costs. Instead, it helps lower your federal tax burden. To take the MCC, you will need to file with Form 1040 and submit Form 8396 (mortgage interest credit). Consult a tax professional if you need assistance.

The MCC allows you to claim up to 50% of the mortgage interest you paid during a given tax year, with a maximum of $2,000. For example, if you paid $3,000 in interest during a tax year, you could be eligible for a tax credit of $1,500, which is 50% of the interest you paid.

Jonesboro Homebuyer Assistance

 

Features

  • Provides a grant to assist with closing or down payment costs

 

Eligibility

  • Must purchase a home within the Jonesboro city limits
  • Home can’t be in a flood zone
  • Home must meet HUD minimum standards
  • The household must meet income limits for the area based on family size:
    • For a family of four: $44,950
    • For a family of three: $40,500
    • For a family of two: $36,000
    • For a family of one: $31,500

 

How it works

The Jonesboro homeownership assistance program requires you to first apply for a mortgage. Once you’re approved, you can apply for the assistance program. To apply, visit the Jonesboro website and download the application.

Pine Bluff Homebuyer Assistance

 

Features

  • Up to $2,000 for down payment assistance
  • Up to $3,000 for closing costs
  • Up to $10,000 in assistance for purchases in the Turtle Creek Subdivision

 

Eligibility

  • You must pay $500 toward the down payment
  • The home must be in Pine Bluff city limits
  • Must complete two home inspections
  • The household must meet income limits for the area based on family size:
    • For a family of four: $36,500
    • For a family of three: $32,850
    • For a family of two: $29,200
    • For a family of one: $25,550

 

How it works

Pine Bluff offers a homebuyer assistance program to first-time and repeat homebuyers. They provide extra incentives for purchasing a home in their Turtle Creek Subdivision, but the program can be used for other homes, too. Pine Bluff recommends starting the process by making an appointment with the Department of Economic and Community Development. You can find their contact information at the bottom of their website.

Helpful Resources

 

Statewide and Regional Programs

Programs by City



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