Arkansas first-time homebuyer assistance programs

If you’re hoping to buy a home in Arkansas, get ready to dig a little deeper into your pocket. In the past year, housing data from Redfin shows that home prices in the Natural State are up nearly 6 percent. While that’s a better deal than you’ll find in a lot of other states (and well below the national median), it can still feel like a large chunk of cash, especially if you’re new to homeownership.

For those seeking support, the best place to start is the Arkansas Development Finance Authority (ADFA). It offers several programs to help a first-time homebuyer in Arkansas, including affordable mortgages, an ongoing mortgage tax credit and loans to help cover the upfront costs of buying a home.

Arkansas homebuying statistics

• Median home price, February 2025: $254,300 (Redfin)
• Median down payment, December 2024: $32,300 (Attom)
• Most affordable counties: St. Francis, Phillips, Ashley, Ouachita, Arkansas, Lafayette, Columbia, Bradley, Dallas, Woodruff

Arkansas first-time homebuyer programs

ADFA Move-Up Loan Program

The Arkansas Development Finance Authority’s Move-Up Program provides affordable 30-year fixed-rate mortgages to first-time and repeat homebuyers. This program can be used with a conventional or a government-backed loan.

• Requirements

  • Annual income cannot exceed $142,000
  • Minimum credit score of 640
  • Maximum debt-to-income (DTI) ratio of 45 percent
  • Purchase price can’t exceed $424,100
  • Must take a homebuyer education course (if you’re a first-time buyer and getting a conventional mortgage)

• Pros and cons

  Pros

  • Available for conventional and government-backed loans
  • Open to first-time and repeat buyers
  • Can be paired with down payment assistance

  Cons

  • Manufactured housing financing only available for government-backed loans

ADFA StartSmart Mortgage Loan Program

If you’re a low-to-moderate-income homebuyer, you might qualify for this ADFA program. It provides 30-year, fixed-rate mortgages — including conventional, FHA, VA and USDA loans — with interest rates approximately 1 percent below current market rates. Freddie Mac HFA Advantage loans are also available through this program.

The program is open to first-time buyers, veterans and spouses of veterans throughout Arkansas. Repeat buyers in 30 targeted counties may also apply.

• Requirements

  • Minimum credit score of 640
  • Maximum DTI ratio of 45 percent
  • Household income cannot exceed certain limits (vary by county and family size)
  • Purchase price can’t exceed $425,000

• Pros and cons

  Pros

  • More affordable interest rates
  • Open to first-time and repeat buyers (in targeted areas)
  • Available for various property types, including single-family homes, townhomes, condos and modular homes

  Cons

  • Homes can’t be on more than five acres of land

Arkansas down payment assistance and grants

ADFA Down Payment Assistance (DPA)

If you qualify for a Move-Up or StartSmart loan, you might also be eligible for this down payment assistance program, which offers between $1,000 and $15,000 to help with a down payment and closing costs. It’s a second mortgage with the same interest rate as your 30-year loan, but to be repaid over 10 years.

• Pros and cons

  Pros

  • Can be used for a down payment and closing costs
  • Open to first-time and repeat buyers

  Cons

  • Must be used with an ADFA first mortgage
  • Requires monthly repayment (with interest)

City-specific homebuyer assistance programs

Little Rock Down Payment Assistance Program

The City of Little Rock has a down payment assistance program that offers up to 6 percent of the purchase price, not to exceed $10,000, to low- and moderate-income first-time homebuyers. The loan is forgiven over five years.

As of March 2025, the program is not accepting new applications. However, the city recommends checking its website for updates.

• Requirements

  • Household income cannot exceed 80 percent of the Area Median Income (AMI), which varies by family size
  • Must agree to live in the house for at least five years
  • Must complete a homebuyer education course
  • Property must be within Little Rock city limits
  • Must get your mortgage through a lender that has a physical presence in the state of Arkansas

• Pros and cons

  Pros

  • Funds don’t need to be repaid

  Cons

  • Limited to lenders with a physical location in Arkansas

Jonesboro Homeownership Assistance Program

The Jonesboro Homeownership Assistance program is designed to help very low- to moderate-income first-time homebuyers purchase homes within the city limits of Jonesboro. Through the program, you can receive up to $5,000 to help with your down payment and closing costs. It comes in the form of a three-year forgivable lien — so after you’ve owned and occupied the home for three years, you won’t have to repay the funds.

• Requirements

  • Household income can’t exceed certain limits (vary by family size)
  • Property must be located in Jonesboro city limits (and not within a flood zone)
  • Home must meet HUD Housing Quality Standards
  • Must complete HUD-approved homebuyer counseling

• Pros and cons

  Pros

  • Funds don’t need to be repaid
  • Can be used for a down payment or closing costs

  Cons

  • If you sell, refinance or move out within the first three years, you’ll need to repay the grant

City of Pine Bluff Home Buyer’s Assistance Program

Designed for low- and moderate-income families, the City of Pine Bluff’s Home Buyer’s Assistance Program helps people buy a house on the open market, a HUD-repossessed home or a “for sale by owner” (FSBO) home. Participants can receive up to $2,000 in down payment assistance and up to $3,000 for eligible closing costs. The money is provided as a five-year deferred loan.

• Requirements

  • Household income can’t exceed 80 percent of the AMI (varies by family size)
  • Must contribute at least $500 of your own funds to the down payment
  • Purchase price can’t exceed $150,000
  • Property must be located in Pine Bluff city limits
  • Must occupy the home as your primary residence for at least five years

• Pros and cons

  Pros

  • Doesn’t need to be repaid

  Cons

  • Funds can’t be used for prepaids
  • Repayment required if you move, sell or refinance in the first five years

Fort Smith Homebuyers Assistance Program

Sponsored by the Crawford-Sebastian Homeownership Center, this program helps low-to-moderate-income borrowers buy a home in Fort Smith. The money can be used to cover up to $10,000 of a down payment and closing costs. Alternatively, it can be used to subsidize a home’s sale price by up to $40,000.

For the assistance to be forgivable, you’ll need to live in the home for five, 10 or 15 years, depending on how much funding you receive.

• Requirements

  • Home must be located in Fort Smith
  • Income can’t exceed 80 percent of the AMI (varies by family size)
  • Purchase price can’t exceed $160,000 (existing homes) or $195,000 (new construction)
  • Must complete a homebuyer education course and participate in one-on-one counseling

• Pros and cons

  Pros

  • Can be used for a down payment, closing costs and principal reduction
  • Open to first-time and repeat buyers

  Cons

  • Repayment necessary if you don’t own and occupy the house for at least five, 10 or 15 years (depending on how much funding you received)

Other Arkansas first-time homebuyer loans

As you shop for an affordable mortgage, be sure to check out national loan programs that might be a good fit for your finances. You can use them in conjunction with an ADFA program or on your own.

FHA Loan

The Federal Housing Administration (FHA) insures mortgage loans — called FHA loans — that are underwritten and funded by private mortgage lenders (you can find them at most big banks and mortgage companies). These mortgages are popular with first-time homebuyers because of their low minimum credit score and down payment requirements. Homebuyers with credit scores as low as 580 are eligible for a mortgage as long as they can make a 3.5 percent down payment. Homebuyers with credit scores as low as 500 are eligible with a 10 percent down payment.

VA Loan

The U.S. Department of Veterans Affairs guarantees mortgages — called VA loans — for eligible veterans, active-duty service members and surviving spouses. These loans are popular with first-time homebuyers because of their competitive interest rates and because they don’t require a down payment or private mortgage insurance.

USDA Loan

USDA loans can help first-time homebuyers finance their home purchase in a bucolic setting. These mortgages don’t require a down payment, but only those living or willing to buy in designated rural areas qualify for USDA loans. Compared to conventional loans, USDA loans may have additional upfront and annual fees.

Get started

• Confirm your eligibility. If you’d like to apply for one of these Arkansas homebuyer assistance programs, you can learn more and search for participating lenders through the ADFA website.
• Research your options. You can also learn about low- or zero-down payment mortgages in Bankrate’s guide to first-time homebuyer loans and programs. The aid includes down payment assistance, loans for energy-efficient upgrades and rehab loans. If you work in public service — for example, as a law enforcement officer, firefighter or in another eligible profession — you could even qualify for the Good Neighbor Next Door program, which has a very low down payment requirement and offers access to homes at a significant discount.
• Compare offers. Before taking out a loan, make sure to compare mortgage offers from three or more lenders to find the best rate and terms.

In addition, you can explore the following resources to learn more about buying a home in Arkansas:

• Compare Arkansas mortgage rates
• Read reviews on Arkansas mortgage lenders
• Shop for homeowners insurance in Arkansas

• Explore other first-time homebuyer programs by state

  Alabama first-time homebuyer programs	Montana first-time homebuyer programs
  Alaska first-time homebuyer programs	Nebraska first-time homebuyer programs
  Arizona first-time homebuyer programs	Nevada first-time homebuyer programs
  Arkansas first-time homebuyer programs	New Hampshire first-time homebuyer programs
  California first-time homebuyer programs	New Jersey first-time homebuyer programs
  Colorado first-time homebuyer programs	New Mexico first-time homebuyer programs
  Connecticut first-time homebuyer programs	New York first-time homebuyer programs
  Delaware first-time homebuyer programs	North Carolina first-time homebuyer programs
  Florida first-time homebuyer programs	North Dakota first-time homebuyer programs
  Georgia first-time homebuyer programs	Ohio first-time homebuyer programs
  Hawaii first-time homebuyer programs	Oklahoma first-time homebuyer programs
  Idaho first-time homebuyer programs	Oregon first-time homebuyer programs
  Illinois first-time homebuyer programs	Pennsylvania first-time homebuyer programs
  Indiana first-time homebuyer programs	Rhode Island first-time homebuyer programs
  Iowa first-time homebuyer programs	South Carolina first-time homebuyer programs
  Kansas first-time homebuyer programs	South Dakota first-time homebuyer programs
  Kentucky first-time homebuyer programs	Tennessee first-time homebuyer programs
  Louisiana first-time homebuyer programs	Texas first-time homebuyer programs
  Maine first-time homebuyer programs	Utah first-time homebuyer programs
  Maryland first-time homebuyer programs	Vermont first-time homebuyer programs
  Massachusetts first-time homebuyer programs	Virginia first-time homebuyer programs
  Michigan first-time homebuyer programs	Washington first-time homebuyer programs
  Minnesota first-time homebuyer programs	Washington D.C. first-time homebuyer programs
  Mississippi first-time homebuyer programs	West Virginia first-time homebuyer programs
  Missouri first-time homebuyer programs	Wisconsin first-time homebuyer programs
  	Wyoming first-time homebuyer programs