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 a first mortgage - ADFA Move-Up . The DPA ranges from $1,000 to $6,000 for closing cost assistance. Cash back to the borrowers is allowed for expenses "paid outside of closing" (POC).
INTEREST RATE: 4% (subject to change without notice)
TERMS: 10 YEAR AMORTIZATION
ADFA requires borrowers, who are first-time homebuyers, 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.
Barbara Whittaker -501-682-5930
Dean Norman - 501-682-5935
Denise Wells - 501-682-5466
Derrick Rose - 501-682-5904
Andrew Branch, VP of Housing, 501-682-5860
|Downpayment Assistance Program Overview
- Type of Loan - Second Mortgage
- Purpose of Loan – cover downpayment, closing costs and prepaids.
- Loan Amount Maximum - $ 1,000 to $ 6,000.
- Interest Rate - 4.00% (subject to change without notice)
- Loan Term – 10 years
- Pre-Purchase Homebuyer Education Class (8 hours) is required prior to closing.
- Cash back to borrowers at closing to cover loan expenses paid up front.
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