Down Payment Assistance
Down Payment Assistance in Arkansas (2026)
Arkansas homebuyers can access up to $10,000 in down payment assistance through the Arkansas Development Finance Authority (ADFA). On the state's $197,800 median home price, that covers roughly 25% of a standard 20% down payment.
Max Assistance
$10,000
Max ADFA Move-Up Program award, per Arkansas Development Finance Authority (ADFA)New to this? Quick definitions
- DPA —
- down payment assistance. Money — as a grant or loan — that helps cover the upfront cash you'd otherwise need to buy a home.
- Grant vs. loan —
- a grant is money you never repay. A loan (forgivable, deferred, or repayable) can come with strings attached, even at 0% interest.
- Forgivable loan —
- the balance is wiped out over time if you stay in the home — but it's still a real loan until then, and selling or refinancing early can trigger repayment.
- Deferred loan (silent second) —
- a second loan on your home with no monthly payments, often called a "silent second" because you won't notice it until you sell, refinance, or pay off your first mortgage — that's when it comes due.
- AMI —
- Area Median Income. The midpoint household income for your county, used to set eligibility — programs list limits as a percentage of AMI (e.g. 80% of AMI).
- Income limit —
- the maximum household income you can earn and still qualify, based on where you live and how many people are in your household.
- Purchase price cap —
- the maximum home price a program will help you buy — homes priced above the cap don't qualify, even if your income does.
Do you likely qualify?
The ADFA Move-Up Program caps the home purchase price at $424,100 — check that cap against homes you're considering, and the county income limit below.
Primary Program: ADFA Move-Up Program
maximum assistance
Forgiven after 5 years if you remain in the home as your primary residence (the home you actually live in, not a rental or second home). Sell, move out, or refinance before then, and you may owe the balance back.
- Administering Agency
- Arkansas Development Finance Authority (ADFA)
- Purchase Price Cap
- $424,100
- Forgiveness Term
- 5 years
How Down Payment Assistance Works
Most state DPA programs are layered on top of a first mortgage — you apply through an approved lender who originates both the primary loan and the DPA second lien at the same closing. The DPA funds reduce the cash you need upfront.
Grants
Free money — no repayment ever. Typically the smallest amounts but highest value.
Forgivable Loans
Balance forgiven after a set period (usually 3–15 years) if you stay in the home. Selling early triggers repayment.
Deferred Loans
No monthly payments. Balance due when you sell, refinance, or pay off your mortgage.
Mistakes first-time buyers make
- Assuming you don't qualify without actually checking the income limit for your county and household size.
- Treating a "forgivable" loan as free money — it can still come due in full if you sell or refinance before the forgiveness term ends.
- Stacking programs incorrectly, or assuming state and local programs combine automatically without confirming with your lender.
- Skipping the required homebuyer education course, which can delay or disqualify your application at closing.
Pro tips
- Talk to a HUD-approved housing counselor first — it's free and they know every program you may qualify for, not just the state's.
- Apply for mortgage pre-approval alongside your DPA program application; most DPA funds are disbursed through an approved lender at the same closing.
- Check local city and county programs in addition to the state program above — many are stackable and cover different costs.
- Ask exactly what triggers repayment on any loan-based assistance before you sign, not after.
Down Payment Calculator
Down Payment Planner
Arkansas median pre-loaded
Your Savings Plan
Timeline
6.7 yrs
saving $500/mo
No PMI at 20% down
20% or more avoids private mortgage insurance entirely.
Estimate only — does not include investment returns on savings.
Full Calculator →What the Assistance Does on a $197,800 Arkansas Home
A worked example at Arkansas's median home price (Zillow Home Value Index, April 2026), using the same payment model as the Arkansas salary page: a 7.03% 30-year fixed rate (Freddie Mac PMMS, week of September 24, 2026), PMI from the National MI rate card on the 10%-down case, the state's effective property-tax rate and homeowners premium, and principal, interest, tax and insurance held to 28% of gross income.
How much of the down payment it covers
A 10% down payment on a $197,800 home is $19,780, and 20% is $39,560. The $10,000 ADFA Move-Up Program maximum covers 51% of the first and 25% of the second, leaving $9,780 of a 10% down payment to come from savings, before any closing costs.
Whether a household under the income limit can carry it
Carrying the median home takes $59,271 a year with 20% down, or $67,843 with 10% down and PMI. The first-mortgage income limit at Arkansas Development Finance Authority (ADFA) is $142,000 (Move-Up program, borrower's qualifying income, statewide (StartSmart limits vary by household size and county)). (Arkansas Development Finance Authority, retrieved 2026-09-14) A household at that limit clears both figures, so the median home sits inside the programme's range: incomes from $67,843 up to $142,000 can carry it with 10% down. At exactly $142,000, the same model supports a price of about $529,797, but the $500,000 purchase-price limit stops the programme first, so for a household near the income limit the price limit, not income, is what binds.
The First Mortgage and Closing Taxes This Assistance Has to Cover in Arkansas
Real Property Transfer Tax
Arkansas levies a state Real Property Transfer Tax of $3.30 per $1,000 of actual consideration (0.33%) on deeds conveying realty when the consideration exceeds $100; it also applies to transfers of mineral rights. (Ark. Code Ann. § 26-60-101 et seq.). (Arkansas Department of Finance and Administration, retrieved 2026-09-14) Under that schedule a $197,800 sale owes $653.
Arkansas Development Finance Authority (ADFA): ADFA StartSmart (first-time homebuyer) and ADFA Move-Up first mortgages
ADFA StartSmart (first-time homebuyer) and ADFA Move-Up first mortgages is the first-mortgage programme run by Arkansas Development Finance Authority (ADFA). (Arkansas Development Finance Authority, retrieved 2026-09-14) Its purchase-price limit is $500,000 (StartSmart first-time homebuyer program, statewide (Move-Up is limited to the Arkansas conventional conforming loan limit)), so a $197,800 home is within it. (Arkansas Development Finance Authority, retrieved 2026-09-14) The income limit is $142,000 (Move-Up program, borrower's qualifying income, statewide (StartSmart limits vary by household size and county)). (Arkansas Development Finance Authority, retrieved 2026-09-14) Down payment help comes through ADFA Down Payment Assistance (DPA) second mortgage: $1,000 to $15,000 for down payment and closing cost assistance; second mortgage with a 10-year term; available with StartSmart or Move-Up first mortgages. (Arkansas Development Finance Authority, retrieved 2026-09-14) Minimum credit score: 640. (Arkansas Development Finance Authority, retrieved 2026-09-14)
Frequently Asked Questions
What down payment assistance is available in Arkansas?
Arkansas's primary DPA program is the ADFA Move-Up Program, administered by the Arkansas Development Finance Authority (ADFA). It provides up to $10,000 as a forgivable loan. Forgiven after 5 years if you remain in the home as your primary residence (the home you actually live in, not a rental or second home). Sell, move out, or refinance before then, and you may owe the balance back.
How much down payment do I need in Arkansas after using DPA?
On a $197,800 home (Arkansas median), a 20% down payment is $39,560. With the ADFA Move-Up Program covering $10,000, your remaining gap would be $29,560. Many buyers combine DPA with a 3–5% conventional or FHA loan to reduce their cash needed further.
Do I have to repay Arkansas down payment assistance?
Forgiven after 5 years if you remain in the home as your primary residence (the home you actually live in, not a rental or second home). Sell, move out, or refinance before then, and you may owe the balance back.
Can I combine Arkansas DPA with other assistance programs?
Yes — Arkansas's DPA programs can generally be combined ("stacked") with local city and county assistance programs, employer homebuyer benefits, and federal programs. Check with an approved lender or HUD-approved counselor to identify all programs you qualify for.
What are the income limits for Arkansas down payment assistance?
The ADFA Move-Up Program does not publish its income limit as a single percentage of AMI; limits are set in dollars by county and household size. Check the Arkansas Development Finance Authority (ADFA) website for current limits in your area.
Related Calculators
Home Affordability Calculator
See how much home you can afford in Arkansas
PMI Calculator
Estimate private mortgage insurance on lower down payments
Arkansas First-Time Buyer Programs
State mortgage programs with low rates and low down payments
Mortgage Payments by Price
See full PITI costs for 8 home prices in Arkansas, from $200K to $750K
What to do next
Down payment assistance is one piece of the puzzle. Here's where to go depending on where you are in the process.
Not sure if you qualify?
Check the Arkansas Development Finance Authority (ADFA) income limits above before ruling yourself out — many buyers qualify without realizing it.
Want the full true cost picture?
DPA covers the down payment, not your ongoing costs. See the true cost of owning a home in Arkansas for the full monthly picture.
Ready to apply?
Most DPA funds are disbursed through an approved lender at closing — get pre-approved and ask specifically about ADFA Move-Up Program when you apply.