JULY 05, 2016 - Historic Low 2.5% Mortgages Available to First-Time Homebuyers And Veterans

Historic Low 2.5% Mortgages Available to First-Time Homebuyers And Veterans

Lowest Interest Rate Offered In Arkansas Development Finance Authority's 39-Year History

LITTLE ROCK, AR, JULY 5, 2016 - The Arkansas Development Finance Authority (ADFA) is offering mortgage loan funds at a record low 2.5 percent to qualified first-time homebuyers and veterans living in Arkansas.  The funds are available through the Authority's new single family mortgage revenue bond program called the "ADFA Advantage".

"This is the lowest mortgage rate offered in the Authority's 39 year history," said ADFA President Aaron Burkes.   "Home ownership has never been more attainable for first-time homebuyers and veterans in Arkansas."

To be eligible for an "ADFA Advantage" Loan, an applicant must be a first-time homebuyer or a veteran.  A first-time homebuyer is someone who has not owned his/her principal residence for three years.  There are 31 targeted counties in Arkansas exempt from this rule.  A home's sales price cannot exceed $250,000, and a borrower's income cannot exceed specified limits.  These limits vary depending on the number of family members and the county in which the property is located.

Participating lenders originate, process and close all "ADFA Advantage" loans.  Most lenders will prequalify a potential homebuyer before they purchase a home.  If a person is interested in obtaining an "ADFA Advantage" home loan they will need to contact a participating lender.

Here are links for -  participating lenders, county income and purchase price limits.

The "ADFA Advantage" Mortgage Program was designed to help those new to the home buying process purchase a home. It can also help with to common obstacles for homebuyers: closing costs and down payment assistance.  There are two types of assistance available:

*   ADFA Downpayment Assistance Program ("DPA") can provide low-to-moderate income homebuyers with up to $6,000 for down payment and closing cost assistance.  A DPA loan is a second mortgage that carries the low interest rate of 4% with a 10-year term.

*   Arkansas Dream Downpayment Initiative ("ADDI") assists lower income, first-time homebuyers, who qualify, with 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 conditionally forgivable over five years.   County income limits can be found HERE.

About the Arkansas Development Finance Authority

ADFA has provided affordable mortgages to first-time homebuyers in Arkansas since 1978 and is the state's largest source of low-cost financing for low-to-moderate income housing development.

Media Contact

Derrick Rose
Public Information Officer
Phone: 501-682-5904
Email address:  derrick.rose@adfa.arkansas.gov

Murray Harding
Single Family Housing Manager
Phone:  501-682-5974
Email address:  derrick.rose@adfa.arkansas.gov