Arkansas First-Time Home Buyer Programs and Assistance

Arkansas first-time buyer programs open now

Arkansas Development Finance Authority (ADFA) is the state's housing finance agency (homebuyer programs page). It runs 1 down payment or closing-cost assistance program alongside 2 below-market first mortgages. Not stated in general terms on ADFA's homeownership landing page;

• StartSmart First-Time Home Buyer Program. Terms: 30-Year Fixed Rate government loan at 5.625% or 30-Year Conventional (Freddie Mac, below 80% AMI) at 5.875%, per ADFA's rate sheet last updated 9/10/2026; funded via tax-exempt mortgage revenue bonds Where: statewide (all 75 counties) Program page
• ADFA Move-Up Loan Program. Terms: 30-Year Fixed Rate government loan at 6.50%, 30-Year HFA conventional (below 80% AMI) at 6.75%, or 30-Year HFA conventional (above 80% AMI) at 6.875%, per ADFA's rate sheet last updated 9/10/2026 Where: statewide (all 75 counties) Program page
• Down Payment Assistance (DPA) Loan Program. Terms: Second mortgage matching the first mortgage's term, 10-year term; cash back to borrower allowed for expenses paid outside of closing (POC) Must pair with: ADFA StartSmart or ADFA Move-Up first mortgage Where: statewide (all 75 counties) Program page

City and county programs in Arkansas

Local governments run their own down payment funds on top of the state programs. These can be combined with a state loan in most cases; each has its own income limit and area.

• City of Little Rock: Down Payment Assistance Program. Up to 6% of the purchase price, not to exceed $5,000. Forgivable second loan. Income limit: At or below 80% of Area Median Income, adjusted for family size. First-time buyers only. Official page
• City of Fayetteville: Homebuying HERO Down Payment Assistance Program. Assistance not exceeding $25,000 toward closing costs/down payment. Forgivable second loan. Official page

How little you can put down

You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On Arkansas's median-priced home (about $270,300), 3% down is roughly $8,109. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.

Who counts as a first-time buyer

For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. Arkansas programs often add income and purchase-price limits, which is another reason to confirm the details with Arkansas Development Finance Authority.

Stack a buyer rebate on top in Arkansas

Down-payment assistance and a buyer commission rebate are two different things, and in Arkansas you can use both. Assistance from Arkansas Development Finance Authority helps with your down payment and closing costs; a buyer rebate returns about 2% of the price to you at closing (roughly $5,406 on a median-priced home), which can cover much of your closing bill.

See Arkansas buyer rebates →   See Arkansas closing costs →

Official sources

• Arkansas Development Finance Authority (ADFA)
• StartSmart First-Time Home Buyer Program | Arkansas Development Finance Authority
• Move-Up Loan Program | Arkansas Development Finance Authority
• Down Payment Assistance Loan Program | Arkansas Development Finance Authority
• Front page | Arkansas Development Finance Authority
• Down payment assistance program provides up to $5,000 for low- moderate-income homebuyers | City of Little Rock
• Partners for Better Housing - Homeownership Program | City of Fayetteville
• Consumer Financial Protection Bureau: down payment options and how to prepare

Arkansas program details last verified against Arkansas Development Finance Authority on September 11, 2026.