For many Arkansans, the largest obstacle to homeownership is saving for down payment and closing costs. In fact, this is a problem all too common among low to moderate income Arkansans who have little of their pay check left after paying for rent, utilities, transportation, insurance and groceries. To help, the Arkansas Development Finance Authority (ADFA) created the Down Payment Assistance (DPA) Program.
ADFA has DPA for qualifying applicants of an " ADFA Move-Up" first mortgage . The DPA ranges from $1,000 to $10,000 for closing cost assistance. Cash back to the borrowers is allowed for expenses "paid outside of closing" (POC).
INTEREST RATE: Matches the "ADFA Move-Up" first mortgage interest rate.
TERMS: 10 YEAR AMORTIZATION
ADFA requires first-time homebuyers using an HFA Preferred Conventional mortgage to attend a Pre-Purchase Homebuyer Education Class where a certificate will be issued upon completion.
Click Here for a list of Homebuyer Counseling Agencies
Both the first and second mortgages will be sold to the master servicer, who currently is U.S. Bank. The second mortgage is not subject to Recapture, and there is no prepayment penalty.
Our Single Family Staff is listed below, please do not hesitate to call with any questions may have.
Dean Norman - Single Family Loan Underwriter - 501-682-5935
Virginia Wright - Single Family Loan Underwriter - 501-682-5923
Denise Wells - Assistant Single Family Program Manager - 501-682-5466
Derrick Rose - Public Information and Outreach - 501-682-5904
Andrew Branch, VP of Housing - 501-682-5860
|Down Payment Assistance Program Overview
- Type of Loan - Second Mortgage
- Purpose of Loan – cover down payment, closing costs and prepaids.
- Loan Amount Maximum - $10,000.
- Interest Rate - Matches the "ADFA Move-Up" first mortgage interest rate.
- Loan Term – 10 years
- Cash back to borrowers at closing to cover loan expenses paid up front.
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