The Arkansas Development Finance Authority (ADFA) offers assistance to homebuyers who can afford a mortgage, but not the upfront costs associated with it. Applicants are granted a loan amount of $1,000 to $6,000 in order to afford these costs. 

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June 25, 2019
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ADFA Down Payment Assistance

Financial Assistance for Homebuyers in Arkansas

In an effort to make the home buying process more affordable for individuals, the Arkansas Development Finance Authority (ADFA) offers a Down Payment Assistance (DPA) program. This program helps potential homebuyers who are able to make monthly mortgage payments but don’t have the money to pay upfront costs associated with the mortgage. 

Available Assistance:
With the ADFA’s Down Payment Assistance (DPA) program, applicants are provided with funds between $1,000 to $6,000, to be put toward covering some or all of the down payment, closing costs, or prepaid items. This assistance comes in the form of a 10-year, second mortgage with a 4 percent interest rate (subject to change without notice). Cash back to the borrowers is allowed for expenses “paid outside of closing” (POC). 

Eligibility Requirements:
Qualifying applicants using an ADFA Move-Up home loan can receive benefits of the DPA program. They must successfully complete a home buyers counseling program prior to closing to be eligible.
 
The purpose of this program is to make funds available to eligible applicants who are interested in purchasing a home but need financial help to pay the upfront costs, which include the down payment, as well as the closing costs and prepaid items required to obtain homeownership. These expenses can add up to a substantial amount, and the inability to pay it might keep people stuck in a renters trap.
 
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.
                                            
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Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.

FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.

Down Payment Grants in Arkansas

The Arkansas Development Finance Authority (ADFA) offers assistance to homebuyers who can afford a mortgage, but not the upfront costs associated with it. Applicants are granted a loan amount of $1,000 to $6,000 in order to afford these costs. 

The American Dream Downpayment Initiative (ADDI) Program provides qualifying, low-income applicants with assistance funds in the form of a forgivable, soft second mortgage, up to six percent of the sale price, not to exceed $10,000. These funds can be used to cover some or all of the downpayment and closing costs. 

The Crawford-Sebastian Homeownership Center offers a variety of Down Payment and Closing Cost Assistance Programs that help potential homebuyers achieve their dreams of homeownership.  Applicants are requird to occupy the purchased property as their primary residence and must utilize an approved lender.

The Crawford-Sebastian Homeownership Center offers a variety of Down Payment and Closing Cost Assistance Programs to potential homebuyers. Each program requires applicants to occupy the purchased property as their primary residence and utilize an approved lender.

This program provides eligible applicants with funds to cover some or all of the down payment and closing costs associated with a mortgage transaction in order to help make the home buying process more affordable. This assistance is paid directly to the title company.

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