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. 

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American Dream Downpayment Initiative

Financial Assistance for Homebuyers in Arkansas

The Arkansas Development Finance Authority (ADFA) realizes that one of the major obstacles on the path to homeownership is the down payment. Though many people can afford to make monthly mortgage payments, they don’t have enough money saved to pay the upfront costs. ADFA’s American Dream Downpayment Initiative (ADDI) Program aims to help individuals overcome this obstacle.
 
Available Assistance
The 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 loan is forgiven over an affordability period of five years in equal, annual installments, as long as the homebuyer continues to own, occupy, maintain, insure, and pay all taxes on the home.
 
Eligibility Requirements
In order to be considered eligible for the ADDI Program, all applicants must meet certain requirements. The program is only available to first-time homebuyers, whose annual household income falls within the set limits, which are based on the county where the property is located and number of people in each household. Applicants are also responsible for completing at least eight hours of a homebuyer counseling class.
 
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.

Down Payment Grants in Arkansas

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 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 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.

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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