StartSmart First-Time Home Buyer Program
The StartSmart First-Time Homebuyer Loan Program by ADFA harnesses the power of IRS tax-exempt mortgage revenue bonds to bring you substantial savings on your home purchase. By passing on these savings to first-time homebuyers, we provide below-market interest rates and lower monthly payments, making homeownership more affordable and accessible. To maximize your benefits, combine the StartSmart Mortgage loan with ADFA's Down Payment Assistance second mortgage and unlock the door to your dream home today.
Type of Loan:
First Mortgage (FHA, VA, RD)
Freddie Mac Conventional (HFA Advantage)
Loan Term:
30-year fixed rate with no prepayment penalty
Interest Rates:
Approximately 1% below market rate. Rates are subject to change without notice
Applicants must be a first-time homebuyer (must not have owned his/her principal residence for three (3) years prior to closing the loan.
Applicants purchasing a home in one of the following 30 federally targeted counties DO NOT have to meet the first-time homebuyer requirement: Bradley, Calhoun, Chicot, Clark, Cleburne, Columbia, Conway, Crawford, Crittenden, Cross, Dallas, Desha, Drew, Jefferson, Lafayette, Lee, Lincoln, Madison, Mississippi, Monroe, Nevada, Ouachita, Perry, Phillips, Prairie, St. Francis, Scott, Searcy, White, Woodruff.
Veterans and spouses of veterans with proper documentation do not have to be first-time homebuyers.
Household income cannot exceed maximum limits. Household income varies depending on the number of family members and the county where the property is located.
Purchase price of a home cannot exceed $425,000.
Home must be the homebuyers primary residence.
Must have a credit score of no less than 640.
Must use an approved lender.
- Single Family Detached
- 1-Unit Primary Residence
- Planned Unit Developments, Townhomes & Condominiums
- Modular Homes
- Duplexes – when purchasing both sides – FHA Financing Only. Must occupy 1 side and must be at least 5 years old. Targeted County duplexes can be newer
- Manufactured Homes – follow FHA, VA, RD guidelines
Homes can be on no more than 5 acres of land. Business cannot occupy more than 15% of the residence.