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 limits in ADFA program documents for StartSmart.

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 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). See StartSmart income limits.
• Minimum median credit score: 640 (ADFA program guidelines require traditional credit and a minimum median score). See ADFA program guidelines.
• Purchase price limit for non‑targeted counties: commonly shown as $425,000 in ADFA program guidelines (targeted county caps and exceptions may differ; check ADFA county table). ADFA Program Guidelines (5.18.2025).
• Maximum debt‑to‑income (DTI) commonly capped at 45% including DPA payments under ADFA underwriting rules.
• 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 subordinate (second) mortgage that matches the ADFA first mortgage rate; cash back for certain borrower‑paid costs may be allowed per ADFA DPA terms. 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 can be forgivable over an affordability period for qualifying low‑income first‑time buyers. ADFA’s FY2023 annual report describes ADDI assistance up to $25,000 in some cases; program terms, availability, and caps depend on HOME allocations and can change. 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 formula (commonly described as up to 6% of purchase price). Dollar caps and income limits have varied by program year; confirm current 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‑approved counseling is required. See the 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 & Community Development program page for current details and income limits: Pine Bluff ECD.

Additional Information:

• Mortgage Credit Certificate (MCC): ADFA publishes MCC materials and notices. An MCC converts a portion of annual mortgage interest into a federal tax credit (federal rules commonly cap the usable credit at $2,000/year when certificate rates exceed 20%). MCC issuance, credit rate, and purchase price limits vary by allocation round; verify ADFA MCC availability and the program credit rate 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. 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.

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