ADFA Down Payment Assistance (DPA) Program
Arkansas Development Finance Authority (ADFA) — the state housing finance agency
Amount: $1,000 to $15,000 for down payment and closing cost assistance, structured as a second mortgage matching the first mortgage's interest rate with a 10-year term (must be paired with an ADFA StartSmart or Move-Up first mortgage)
Type: Second mortgage (repayable, not forgivable)
Must be used alongside an ADFA StartSmart or Move-Up first mortgage; minimum credit score 640; must go through an ADFA-approved lender; property must be the borrower's primary residence in Arkansas; income and purchase price limits apply per the paired first-mortgage program
ADFA StartSmart First-Time Home Buyer Program
Arkansas Development Finance Authority (ADFA)
Amount: Below-market 30-year fixed mortgage — as of the June 22, 2026 ADFA rate sheet, 5.25% for government loans (FHA/VA/RD) and 5.50% for Freddie Mac conventional loans (below 80% AMI); pairs with the $1,000–$15,000 DPA second mortgage above
Type: First mortgage with below-market rate, combinable with DPA second mortgage
True first-time buyer: cannot have owned a principal residence in the prior 3 years (waived for veterans and for buyers in 30 federally targeted Arkansas counties); minimum credit score 640; household income must be under county/family-size AMI limits; maximum home price $500,000; primary residence on 5 acres or less; must complete an approved homebuyer education course; loan must close through an ADFA-approved lender
ADFA Move-Up Loan Program
Arkansas Development Finance Authority (ADFA)
Amount: 30-year fixed mortgage at 6.25%–6.50% depending on AMI level (per ADFA's June 22, 2026 rate sheet); can be paired with the $1,000–$15,000 ADFA DPA second mortgage
Type: First mortgage (not limited to first-time buyers), combinable with DPA second mortgage
Open to repeat/move-up buyers as well as first-timers (no 3-year ownership restriction); minimum credit score 640; maximum debt-to-income ratio 45%; household income limit reported at $142,000 (confirm current figure with a participating lender since ADFA's own program page did not restate this number); property must be the borrower's Arkansas primary residence
Arkansas Dream Down Payment Initiative (ADDI)
Arkansas Development Finance Authority (ADFA), using HUD (U.S. Dept. of Housing and Urban Development) funds
Amount: Up to 10% of the sale price, capped at $10,000, as a soft second mortgage; forgiven in equal annual installments over a 5-year affordability period as long as the buyer keeps occupying, insuring, and paying taxes on the home
Type: Forgivable second mortgage (deferred, forgiven over 5 years)
Targeted at low-income first-time buyers; must occupy the home as a primary residence; must use an ADFA-approved lender. Note: this program was not listed among ADFA's current active offerings on its main homeownership page as of this research (last updated June 22, 2026) — third-party sites still describe it, but its live funding status should be confirmed directly with ADFA or an approved lender before relying on it.