Thank you for your interest in the incentives for homeownership offered by the State of Arkansas and administered by the Arkansas Development Finance Authority (ADFA).  ADFA First Time Homebuyer Programs make purchasing a home more affordable for low-to-moderate income families and individuals by offering fixed, low-interest rate mortgage loans. In addition, ADFA also offers down payment and closing costs assistance, and the ADFA MCC - Mortgage Credit Certificate Program.  For eligible borrowers, these programs can make owning a home more affordable and greatly reduce the out of pocket expense to the buyer.


Step 1 - Check the county income list to see if your income qualifies for the county where you want to live.

Step 2 - Find a lender on list of approved lenders to get prequalified.

Step 3 - If you're using using the Arkansas Dream Downpayment Initiative (ADDI) or are a first-time homebuyer using ADFA Down Payment Assistance then you will need to take a Pre-Purchase Homebuyer Education Class where a certificate will be issued upon completion -  homebuyer counselor list

Step 4 - Once you've met with your lender, become pre-approved, and know your target price range, go find your dream home!


ADFA HOMEownership Programs

The "ADFA Move-Up Choice" Single Family Loan Program offers the homebuyer a grant of 4% of their loan amount to cover downpayment and closing costs.

The "ADFA Move-Up" Loan Program offers both first-time homebuyers (who are excluded from using the ADFA Advantage program due to higher incomes) and repeat Arkansas homebuyers, an affordable mortgage.

ADFA MCC - Mortgage Credit Certificate Program is a dollar-for dollar tax credit for first time, low-to-moderate income homebuyers. The certificate is issued by ADFA and allows qualifying, taxpaying homebuyers to claim a tax credit of up to 50 percent of the mortgage interest paid per year, capped at $2,000 annually.

ADFA Downpayment Assistance Programs

ADFA Downpayment Assistance Program (DPA) can provide up to $6,000 for down payment and closing cost assistance.  ADFA's Down Payment Assistance (DPA) Loan is a second mortgage that carries the low rate of 4 percent with a 10-year term.

Arkansas Dream Downpayment Initiative (ADDI) provides lower income, first-time homebuyers in Arkansans, who qualify, up to 6% of the purchase price of their home, not to exceed $10,000.  It is a second mortgage loan with no monthly payment that is forgivable over five years.