The down payment is the number one reason Conway renters tell us they can't buy yet. Arkansas has state programs built to solve exactly that problem, and most people have never heard of them.
Who runs the programs
The Arkansas Development Finance Authority (ADFA) is the state's housing finance agency. Its homebuyer programs pair a below-market first mortgage with a second mortgage that covers your down payment and closing costs. They're originated through participating lenders, not through ADFA directly.
The three pieces
ADFA StartSmart is the first mortgage for first-time buyers, meaning anyone who hasn't owned their primary residence in the past three years. Veterans are exempt from the first-time rule. It's a 30-year fixed-rate loan priced roughly 1% below market, available as an FHA, VA, USDA, or conventional loan, with a purchase price cap of $500,000 and a minimum 640 credit score.
ADFA Move-Up is the first mortgage for everyone else. There's no first-time buyer requirement, household income can be up to $142,000, and the same 640 credit score applies.
ADFA Down Payment Assistance is the second mortgage that does the heavy lifting: $1,000 to $15,000 toward your down payment and closing costs, repaid over a 10-year term. It pairs with either StartSmart or Move-Up.
What it looks like in practice
Take a $240,000 home with an FHA first mortgage. The 3.5% down payment is $8,400, and closing costs might add another $6,000. With ADFA assistance covering up to $15,000, a buyer could close with very little cash out of pocket. The trade-off is a second monthly payment on the assistance loan, which we'll show you before you commit.
Other ways to close the gap
ADFA isn't the only tool. VA and USDA loans require no down payment at all. Gift funds from family are allowed on every program. Sellers can pay a portion of your closing costs, and lender credits can cover more in exchange for a slightly higher rate. Often the right answer is a combination.
The fine print
ADFA adjusts income limits, purchase price limits, rates, and assistance amounts without notice. The figures here were current when this was written. Before you shop, call us and we'll confirm today's numbers for your county and household.
Read the full breakdown on our down payment assistance page, or start a quick quote and we'll tell you what you qualify for.
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