Arkansas has beautiful homes and a flourishing real estate market. Many people dream of having a home in Arkansas but cannot afford it. So, if you want to have a home in Arkansas, there are many first time home buyer Arkansas. Buyers interested in these programs must adhere to additional requirements, including residency, income, and credit requirements.
5 First-time Home Buyer Programs
1. Arkansas Dream Down Payment Initiative
The ADFA Move Up loan program must be used alongside the ADDI program. This program may also qualify first-time home buyers for a specific mortgage tax credit program, which increases their savings.
· The maximum permitted amounts must not exceed household income.
· The buyer must finish a home buyer education course.
· You must work with a recognized lender.
· The maximum price for a home is $250,000
2. ADFA Down Payment Assistance
It is an alternate program available if you earn too much money or pay too much for a property to be eligible for the ADDI program. The ADFA Down Payment Assistance program offers $10,000 toward closing costs and down payments. In contrast to the ADDI program, this second mortgage has a 10-year term and is not forgiven.
3. Mortgage Credit Certificate (MCC) Program
The ADFA MCC aids first-time homeowners in reducing the yearly costs of home ownership. First-time home buyers with low-to-moderate incomes can take advantage of this program.
· You must apply for a certificate before closing on your mortgage.
· Your new home purchase also cannot exceed $270,000.
· You must make your home your principal residence.
· You should meet income requirements that vary with the household size.
4. ADFA Move-Up Loan Program
Low- to moderate-income homebuyers can get affordable 30-year fixed-rate mortgages through the Arkansas Development Finance Authority’s (ADFA) Move-Up Program. Buyers can use conventional, FHA, VA, or USDA loans with this program.
· The maximum annual income is $137,000
· Buyers should have a minimum credit score of 640.
· The debt-to-income ratio (DTI) is up to 45% is the maximum debt-to-income ratio (DTI).
· You must complete a homebuyer education course.
· $647,200 is the maximum purchase price.
5. Local Home Buyer Programs and assistance
First-time homebuyers with low incomes can receive up to 6% of the purchase price through the City of Little Rock’s down payment assistance program. The loan is relieved for five years. However, you’ll have to get your mortgage from a lender in a physical location in Arkansas. The other local programs based on the area are available in Fort Smith, Jacksonville, and Jonesboro.
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