Thank you for your interest in the incentives for homeownership offered by the State of Arkansas and administered by the Arkansas Development Finance Authority (ADFA).  ADFA Homeownership Programs make purchasing a home more affordable for low-to-moderate income families and individuals by offering fixed, low-interest rate mortgage loans. In addition, ADFA also offers down payment and closing costs assistance, and the ADFA MCC - Mortgage Credit Certificate Program.  For eligible borrowers, these programs can make owning a home more affordable and greatly reduce the out of pocket expense to the buyer.


Step 1 - Check the county income list to see if your income qualifies for the county where you want to live.

Step 2 - Find a lender on list of approved lenders to get prequalified.

Step 3 - If you're using using the Arkansas Dream Downpayment Initiative (ADDI) or are a first-time homebuyer using ADFA Down Payment Assistance then you will need to take a Pre-Purchase Homebuyer Education Class where a certificate will be issued upon completion -  homebuyer counselor list

Step 4 - Once you've met with your lender, become pre-approved, and know your target price range, go find your dream home!


ADFA HOMEownership Programs

The "ADFA Move-Up Choice" Single Family Loan Program offers the homebuyer a grant of 4% of their loan amount to cover downpayment and closing costs.

The "ADFA Move-Up" Loan Program offers both first-time homebuyers (who are excluded from using the ADFA Advantage program due to higher incomes) and repeat Arkansas homebuyers, an affordable mortgage.

ADFA MCC - Mortgage Credit Certificate Program is a dollar-for dollar tax credit for first time, low-to-moderate income homebuyers. The certificate is issued by ADFA and allows qualifying, taxpaying homebuyers to claim a tax credit of up to 50 percent of the mortgage interest paid per year, capped at $2,000 annually.

ADFA Downpayment Assistance Programs

ADFA Downpayment Assistance Program (DPA) can provide up to $6,000 for down payment and closing cost assistance.  ADFA's Down Payment Assistance (DPA) Loan is a second mortgage that carries the low rate of 4 percent with a 10-year term.

Arkansas Dream Downpayment Initiative (ADDI) provides lower income, first-time homebuyers in Arkansans, who qualify, up to 6% of the purchase price of their home, not to exceed $10,000.  It is a second mortgage loan with no monthly payment that is forgivable over five years.