Buying a home, especially your first one, is one of the largest purchases you’ll make in your lifetime! It can be confusing to get the process started, especially if you don’t know where to look for assistance! Luckily, the AFDA (Arkansas Development Finance Authority) has some amazing programs to give first-time home buyers a helping hand in purchasing their own home! Here’s the rundown on how these programs could help you.

About the ADFA’s Move-Up Program

The Arkansas Development Finance Authority (ADFA) Move-Up Program is designed to make your first mortgage a friendly and affordable one. An ADFA Move-Up Loan is a first mortgage that can be used in tandem with an FHA, VA, Conventional (Fannie Mae or Freddie Mac), or USDA loan. Interest rates are subject to change, so you’ll have to visit their site to find a list of trusted and participating vendors near you for more details. 

If you choose to use an ADFA Move-Up Loan, it will be a 30-year fixed mortgage. The maximum loan amount is in compliance with Arkansas’ conventional conforming loan limit – you cannot use this loan for a house priced higher than $424,100. Here are the types of buildings you can purchase with this type of loan: 

• 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)

First-time home buyers must intend to live in the property being purchased as their primary residence, and they must complete a pre-purchase educational course for homebuyers. The homebuyer’s credit score must be at least 640, and their annual income cannot exceed $137,000.

AFDA’s Down Payment Assistance Program

One of the main challenges of getting into your first home is saving up a down payment! With the AFDA’s DPA (Down Payment Assistance) Loan program, you can buy a home with less cash on hand. This program provides anywhere from $1,000 to $10,000 to go towards your down payment and closing costs! The DPA funds are a second-mortgage – the term is 10 years and the interest rate will match your first mortgage (your Move-Up Loan).

Arkansas Dream Down Payment Initiative (ADDI)

The ADDI (Arkansas Dream Down Payment Initiative) program allows Arkansas homebuyers utilizing a ADFA Move-Up Loan the opportunity at a second mortgage of up to $10,000 or 10% of the purchase price of their home! This mortgage has no monthly payments, and after 5 years it’s forgivable. To be eligible, you must meet low-income requirements and be buying a home within the purchasing  limits. First-time home owners who take advantage of this program might also qualify for an MCC at no additional cost.

ADFA MCC (Mortgage Credit Certificate) Program

ADFA Move-Up Loan users who are first-time home buyers may qualify for an MCC (mortgage credit certificate). The ADFA MCC gets the user an annual tax credit of up to 50% of the interest paid on the mortgage (with a maximum credit of $2,000). This tax credit can be claimed every year for the lifetime of the mortgage (as long as the house is the lendee’s primary residence). Home buyers wishing to utilize this program to lower their tax bill must apply for the MCC before closing on their ADFA Move-Up Loan. 

Don’t stop here! Keep researching additional options for Arkansas and United States first-time home buyers. The options are nearly endless! Between these ADFA programs, federal programs, grants, zero-down payment mortgages, etc., you can get into your first home without breaking the bank. Give Edge Realty a call today to see available properties for purchasing in Central Arkansas! Let’s find your dream home.