Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in Arkansas
City of Little Rock Down Payment Assistance Program
The City of Little Rock established the Down Payment Assistance Program to assist first-time homebuyers with low- and moderate-incomes in realizing their goals of homeownership.
Available Assistance
The City of Little Rock, through the Down Payment Assistance Program, offers funds to help low- and moderate-income homebuyers buy a home. The City offers assistance up to 6% of the purchase cost, but must not exceed $5,000. This is provided as a forgivable loan in equal monthly payments over a period of 60 months.
Eligibility Requirements
All applicants must meet specific minimum requirements to qualify for the Down Payment Assistance Program. They must be first-time homebuyers. Therefore, they must not have owned a house in the last 3 years. They also need to prove that their household income, adjusted according to family size, is not more than 80% of the area median income. The homebuyers must also complete a homebuyer counseling program acceptable to the City of Little Rock. In addition, they need to be approved for a mortgage through an Arkansas bank or mortgage company.
ADFA Down Payment Assistance
Arkansas Development Finance Authority (ADFA), offers financial assistance to homeowners who are able to afford a mortgage but cannot cover the initial costs. The loan amount can be $1,000 – $6,000 in order to afford the costs.
Available Assistance
The ADFA’s Down payment assistance provides funds to applicants ranging from $1,000 to $6,000 to help with closing costs and down payments. This assistance is also in the form of a second 10-year mortgage at a 4.5% interest rate, which however, may change without notice. Then, for expenses “paid out of closing”, cashback is available to borrowers (POC).
Eligibility Requirements
The DPA program is available to qualified applicants who have an ADFA Move Up home loan. To be eligible, they must complete the home buyers counseling program before closing.
Arkansas Dream Down Payment Initiative
Arkansas Dream Downpayment Initiative (ADDI Program) provides assistance funds to qualifying low-income applicants in the form of a forgivable soft second mortgage, up to 10% of the sales price and not exceeding $10,000. You can also use these funds for closing and down payments, or all of them.
Available Assistance
The ADDI Program offers assistance funds to low-income applicants in the form of a forgivable second mortgage, up to 10% of the sales price and not exceeding $10,000. You can then use these funds for closing costs and down payments. The loan is also forgivable in five equal annual installments over a period of affordability. However, this is only provided if the homebuyer continue to own, occupy or maintain the home.
Eligibility Requirements
All applicants must meet the requirements to be eligible for the ADDI Program. Only first-time homebuyers are eligible for the program. However, the income limit is based on where the property is located in the county and how many people live there. The applicant must also complete at least eight hours in a homebuyer counselling course.
City of Pine Bluff Down Payment Grants
Crawford-Sebastian Homeownership Center provides a range of assistance programs that can help potential homebuyers reach their homeownership goals. The applicant must occupy the property as their primary residence. They also need to use an approved lender.
This programme similar to the down payment First-Time Homebuyer Assistance Programs in Arizona.
Available Assistance
The Home Buyer’s Aid Program offers income-eligible applicants $2,000 towards the down payment and $3,000 toward eligible closing costs (not including prepaid items) to help them buy a home. All closing costs above $3,000. are the responsibility of the applicant. The funds will be provided as a zero-interest, five-year deferred loan. The loan is not due to for repayment unless you sell the property, transfer it or refinance it within the five year period.
Eligibility Requirements
The Home Buyer’s Program is open to families with low-to moderate incomes. It does not apply to households earning more than 80 percent of Pine Bluff’s area median income. You can use this funding to purchase a home that is on the market, a HUD repossessed house or one that is “for rent by owner” (FSBO). The City of Pine Bluff regulations require that applicants meet the requirements for the HUD HOME Program. They must also contribute at least $500 towards the down payment (not included in the closing cost).
Income Limits
- 1 person – $27,000
- 2 persons – $30,850
- 3 persons – $34,700
- 4 persons – $38,550
- 5 persons – $41,650
- 6 persons – $44,700
- 7 persons – $47,850
- 8 persons – $50,900
Crawford-Sebastian Homeownership Center
Crawford-Sebastian Homeownership Center offers a range of assistance programs for potential homebuyers, including a Down Payment Assistance Program and Closing Cost Assistance Programs. Each program requires that applicants occupy the property as their primary residence, and use an approved lender.
Available Programs
All of these assistance programs require applicants to occupy the property as their main residence and use an approved lender.
The Affordable Housing Program
The grant is for first-time homebuyers or single parents with dependents. It includes a $4,000 grant towards down payment and closing costs. The funds don’t need to repayment as long as the buyer remains at home for five years. Armstrong Bank is required to finance the first mortgage for applicants who are in the low income bracket. The applicant must also contribute a minimum $500 towards the mortgage and complete an 8-hour homebuyer counseling course. The home must be the applicant’s primary residence and must be in Crawford or Sebastian Counties (some areas of Oklahoma also).
The Arkansas Development Finance Authority Home to Own Program
You can get assistance funds of up to $6,000 through a second mortgage. You can use these funds to cover some or all the closing costs and down payments. This program requires an FHA or VA first mortgage with a term of 30 years (no prepayment penalties). Maximum purchase price for the program is $250,000. All applicants must complete a homebuyer counseling program and meet the income requirements of the program (based on their county and number of households).
Crawford County
- 1-2 person household – $63,480
- 3 or more person household – $74,060
Sebastian County
- 2 person household – $56,520
- 3 or more person household – $65,940
The Down Payment Assistance (DPA) Program
The funds can be used to provide applicants with a second mortgage of $1,000 to $6,000. You can use the funds to pay down your mortgage, cover closing costs and other prepaid expenses. The term of the loan is 10 years and the interest rate can change. Program guidelines stipulate that the property must be owned and occupied by the buyer. Applicants are required to complete an 8-hour counseling course about homebuyers.
Jonesboro Homeownership Assistance Program
The program allows eligible applicants to receive funds to pay a portion or all of the closing costs and down payment associated with a mortgage transaction. This helps to make home-buying more affordable. This assistance is paid directly by the title company.
Jonesboro recognized that while many people can afford monthly mortgage payments, not all are able to pay large out-of-pocket expenses such as down payments. The Homeownership Assistance Program is offered by the Grants and Community Development Departments to increase homeownership opportunities for low and moderate-income citizens. The program offers funds to eligible applicants to pay a portion or all of the closing costs and down payment associated with a mortgage transaction. This helps to make home ownership more affordable. This assistance is paid directly by the title company.
Eligibility Requirements
All applicants must meet the eligibility requirements to be eligible for the Homeownership Assistance Program. All applicants must be first-time homebuyers. Those who have owned a house in the past three years are not eligible for assistance. They must have an annual income that meets Federal Income Guidelines. They are responsible for taking a HUD-approved homebuyer education course (online or at the nearest HUD agency).
Property Guidelines
The home must be the applicant’s primary residence and must be within Jonesboro. It cannot be found in the flood zone and must meet HUD’s Minimum Quality Standards for Housing.
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