Purchasing your first home is a significant milestone and one of the biggest financial decisions you’ll ever make. The process can be overwhelming, especially if you’re unsure where to find the right support. Fortunately, the Arkansas Development Finance Authority (ADFA) offers a range of first-time home buyer programs designed to make homeownership more accessible and affordable. Explore how these ADFA programs can provide you with the assistance you need to buy your dream home in Arkansas.

About the ADFA’s Move-Up Program

The Arkansas Development Finance Authority (ADFA) Move-Up Program is specifically designed to make your first mortgage both accessible and affordable. The ADFA Move-Up Loan serves as a primary mortgage that can be paired with FHA, VA, Conventional (Fannie Mae or Freddie Mac), or USDA loans, providing flexibility for Arkansas home buyers. To get the most up-to-date information on interest rates and find a list of participating vendors, visit the official ADFA website.

When you opt for an ADFA Move-Up Loan, you’ll benefit from a 30-year fixed mortgage, offering stability and predictability over the life of your loan. The maximum loan amount adheres to Arkansas’ conventional conforming loan limit, which currently stands at $424,100. This loan can be used to purchase various types of properties, including:

• Single Family Home
• Condo
• Townhouse
• Unit in a PUD (Planned Unit Development)
• Duplex (if you use an FHA loan)
• Manufactured Home (if you use an FHA, VA, or USDA loan)

To qualify, first-time home buyers must plan to live in the purchased property as their primary residence and complete a pre-purchase homebuyer education course. Additionally, a minimum credit score of 640 is required, and the buyer’s annual income must not exceed $137,000.

AFDA’s Down Payment Assistance Program

Saving for a down payment is one of the biggest hurdles for first-time home buyers. Fortunately, the Arkansas Development Finance Authority (ADFA) offers a Down Payment Assistance (DPA) Loan program that can help you purchase a home with less upfront cash. Through this program, you can receive between $1,000 and $10,000 to cover your down payment and closing costs. The DPA funds are structured as a second mortgage with a 10-year term, and the interest rate matches that of your primary mortgage (ADFA Move-Up Loan).

Arkansas Dream Down Payment Initiative (ADDI)

The (Arkansas Dream Down Payment Initiative) ADDI offers Arkansas homebuyers using an ADFA Move-Up Loan the chance to secure a second mortgage of up to $10,000 or 10% of their home’s purchase price. This second mortgage requires no monthly payments and becomes fully forgivable after five years. To qualify, you must meet specific low-income requirements and purchase a home within designated price limits. Additionally, first-time homebuyers who participate in this program may also be eligible for a Mortgage Credit Certificate (MCC) at no extra cost.

ADFA MCC (Mortgage Credit Certificate) Program

First-time home buyers using an ADFA Move-Up Loan may also qualify for a Mortgage Credit Certificate (MCC). The ADFA MCC provides an annual tax credit of up to 50% of the mortgage interest paid, with a maximum credit of $2,000 per year. This tax credit can be claimed every year for the life of the mortgage, as long as the home remains your primary residence. To take advantage of this program and reduce your tax liability, be sure to apply for the MCC before closing on your ADFA Move-Up Loan.

But don’t stop your research here! Explore additional options available to first-time home buyers in Arkansas and across the United States. With a variety of ADFA programs, federal assistance, grants, and zero-down payment mortgages, there are numerous ways to make homeownership more affordable. Contact Edge Realty today to discover available properties in Central Arkansas and take the first step toward finding your dream home.