Down Payment Path

Down Payment Assistance Programs in Arkansas

Arkansas provides a variety of programs to assist homebuyers with down payment and closing costs. These initiatives are open to a broad range of buyers, making homeownership more accessible for individuals and families across the state.

ADFA Move-Up Program

The Arkansas Development Finance Authority (ADFA) Move-Up Program helps homebuyers with competitive mortgage options and financial support for upfront costs.

  • Offers 30-year fixed-rate loans with affordable interest rates.
  • Available to both first-time and repeat homebuyers who meet income and credit requirements.
  • Can be combined with down payment assistance programs for additional savings.

ADFA Down Payment Assistance (DPA)

The ADFA Down Payment Assistance program provides funds to cover down payments and closing costs.

  • Offers up to $15,000 in assistance as a second mortgage.
  • Repayment terms include low interest rates over 10 years.
  • Eligible for buyers using the ADFA Move-Up Program as their primary loan.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate program provides a tax benefit to reduce the overall cost of homeownership.

  • Allows buyers to claim a federal tax credit for a percentage of their mortgage interest paid annually.
  • Available to eligible buyers with income and purchase price limits.
  • Can be combined with other ADFA assistance programs.

USDA Rural Development Loans

For homebuyers in rural areas, the USDA Rural Development Loan offers affordable financing with no down payment requirement.

  • Available to buyers in USDA-designated rural areas.
  • Income limits apply, but many Arkansans qualify due to the state’s large rural areas.
  • Can be used alongside other assistance programs for closing cost coverage.

City and County Assistance Programs

Many cities and counties in Arkansas offer additional assistance tailored to local homebuyers’ needs.

  • Local programs may provide grants or low-interest loans for down payments and closing costs.
  • Areas like Little Rock and Fayetteville frequently offer unique initiatives to support buyers.
  • Eligibility and funding levels vary based on location and program guidelines.

Arkansas’ down payment assistance programs are designed to make homeownership a reality for more people by reducing the financial barriers of buying a home. Whether you are purchasing your first home or moving into a new one, these programs can help you achieve your goal of owning a home in the Natural State.