Arkansas Down Payment Assistance Programs
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Arkansawyers! Let’s get you a house!
Listed below are down payment assistance programs for the state of Arkansas. We’ve listed them in two categories: statewide and county/ city specific. If you don’t see a DPA program for your county, don’t be disheartened. New grants and services are made every day. Also, the best program that works best for you may not be advertised on the web. Before resorting to a statewide or national down payment assistance program, contact your county’s local housing authority because they may have a program better suited to your needs.
Also: Cities are statistically more likely to have a DPA program than suburban counties. It’s just how it is. If you are nowhere near a city, don’t forget about USDA loans.
A USDA loan covers 100% of the purchase price of your house and is available in rural areas. It’s an entirely different entity than a down payment assistance program, but can still help you get a house if you’re short on cash, which is why it’s listed below.
That said, DPA programs are still preferable to USDA loans because many of them do not have to be paid back— meaning they effectively lower the purchase price of your home. If you’re just starting out on your home buying journey, first apply to DPA programs before you start thinking about USDA. Also, don’t forget to contact your local housing authority to see if they have any unlisted DPA programs in your area!
Statewide Down Payment Assistance Programs
Arkansas Development Finance Authority (ADFA): ADFA Down Payment Assistance
Funds between $1,000 and $10,000
Can also be used for closing costs
10 year, second mortgage loan
4% interest
Cash back is allowed for house expenses after closing
Arkansas Development Finance Authority (ADFA): ADFA Move-Up Choice Loan Program
First mortgage single family loan program
Offers a grant of 4% of the purchase price, which can be used to pay for closing costs, down payment costs, or debt
Funded by a slightly higher interest rate over the life of the loan
First time home buyers may qualify for a free ADFA MCC (mortgage credit certificate)
Arkansas Development Finance Authority (ADFA): Home to Own
Website: https://adfa.arkansas.gov/
Not a DPA by itself, but it does lower the costs of buying and owning a home
It’s a first mortgage program that has low rates and is intended to be used with ADFA’s other programs, such as Move-Up or Down Payment Assistance
See site for more details
Habitat for Humanity
Website: https://www.habitat.org/
Helps families build their own homes
Very affordable rates
Drastically reduced closing costs and required down payments
See website for further details
Northwest Regional Housing: Home Ownership Voucher Program
Website: https://www.nwregionalhousing.org/home-ownership-program
Homes may be purchased in any jurisdiction provided they are willing to work with the program
This program has a variety of ways it helps low income earners, including monthly mortgage assistance
See website for more details
U.S. Department of Agriculture and Rural Development
Website one: https://www.rd.usda.gov/programs-services/single-family-housing-direct-home-loans/ar
Website two: https://www.rd.usda.gov/files/fact-sheet/RD-FactSheet-RHS-SFH502Direct.pdf
Home loan that covers 100% of the home purchase price
Home must be in a rural area
Borrower must be unable to get a loan elsewhere
Home must be in a decent, sanitary condition
Home must be the borrower’s primary residence
Multiple loan terms available
Some even as high as 38 years, which dramatically cuts the monthly payments
U.S. Department of Housing and Urban Development: Arkansas Dream Down Payment Initiative (ADDI):
Website two: http://adfa.arkansas.gov
Up to 6% of the purchase price, not to exceed $10,000
It is a second mortgage that is forgiven after 5 years of on time payments
Must be a first time home buyer, or not have owned a home in the past three years
Must have low to moderate income to qualify
See website for more details
County Specific Down Payment Assistance Programs
Note: Each county in Arkansas was individually combed through for down payment assistance programs. The following is what was found. If you don’t see your county, try a local city. DPAs in individual cities were not specifically searched for. Don’t forget to contact your local housing authority! Or look for USDA eligible houses!
Baxter County, Arkansas: Down Payment Assistance Programs
Northwest Regional Housing Authority: Mutual Self-Help Housing Program
Website one: https://www.nwregionalhousing.org/news-view?id=2
Website two: http://www.nwregionalhousing.org/
Points of Contact:
Troy Clark
(870) 741-1144
Vickey Stratton or Betty Bing
(870) 741-5522
For new homes
No down payment required
Families, in conjunction with a contractor, build the home themselves
For more information, please see websites for further details
Bradley County, Arkansas: Down Payment Assistance Programs
Mortgage Investors Group: First Time Buyer Program and Down Payment Assistance Loan
Borrowers earning up to 120% of the area median income still qualify
Select borrowers may qualify for a 0% second loan to be used towards down payment and closing costs
For more information, call 1-800-489-8910
Or contact information@migonline.com
Craighead County, Arkansas: Down Payment Assistance Programs
Jonesboro Homeownership Assistance Program
Website: http://www.jonesboro.org/155/Homeownership-Assistance
Must be a first time home buyer
Property must be within the city limits of Jonesboro
Home cannot be within a flood zone
All assistance is paid directly to the title company
Applicant must complete a home buyer education course
Points of Contact:
Brenda Hall: Grants and Finance Specialist
(870) 336-7104
Yaoska Angy Abaunza: Grant (CDBG) Program Manager
(870) 336-7170
See website for further details
Crawford County, Arkansas: Down Payment Assistance
Affordable Housing Program
Website: http://cscdc.info/c-scdc-programs/home-ownership-asset-development/down-payment-assistance/
$4,000 grant, which can be used for down payment costs or closing costs
Must use Armstrong Bank as lender
No repayment needed as long as borrower stays in home for at least 5 years
Home price cannot exceed $125,000
Must take a home buyer education course
Must pay $500 counseling fee, but funds can come out of grant
See website for further details
Jefferson County, Arkansas: Down Payment Assistance Programs
City of Pine Bluff Economic and Community Development: Homebuyer Assistance Program
Website: http://pbecd.com/homebuyer.html
Income must be at or below 80% of the area median income
Up to $2,000 in down payment funds
Up to $3,000 in closing costs funds
Home owner is responsible for all closing costs over $3,000
Home buyer must contribute at least $500 towards down payment costs
If you are married or have a divorce pending, some Arkansas laws may affect your home purchase
Notify Pine Bluff’s loan officer if this is the case
(870) 543-1820
Please see website for more details
Pulaski County, Arkansas: Down Payment Assistance Programs
Jacksonville Home Buyer’s Assistance Grant
Website: www.cityofjacksonville.net/179/Home-Program-Buyers-Assistance
For homes purchased within the city limits of Jacksonville
Program will pay half your out of pocket expenses at the time of closing
Up to $3,000
See website for more details
City of Little Rock
Has a variety of community housing development organizations (CHDOS)
See the following:
Affordable Housing Inc.
Better Community Developers
University District Development Corporation
Sebastian County, Arkansas: Down Payment Assistance Programs
Affordable Housing Program
Website: http://cscdc.info/c-scdc-programs/home-ownership-asset-development/down-payment-assistance/
$4,000 grant, which can be used for down payment costs or closing costs
Must use Armstrong Bank as lender
No repayment needed as long as borrower stays in home for at least 5 years
Home price cannot exceed $125,000
Must take a home buyer education course
Must pay $500 counseling fee, but funds can come out of grant
See website for further details
City of Fort Smith
Website: http://cscdc.info/c-scdc-programs/home-ownership-asset-development/down-payment-assistance/
Up to 3.5% of purchase price
No repayment as long as borrower lives in property for five years
Must be purchased within the city limits of Fort Smith
Must use an approved lender
Purchase price cannot exceed $125,000
Must complete a home buyer education course
No first time buyer requirement
See website for more details