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Buying a house in Arkansas? You’ll need to know this!

Buying a house in Arkansas? You’ll need to know this!

If you want to buy a house with low income in Arkansas, there is help available to you! There are many programs that will assist you with tax reductions, down payment assistance and so much more!

Don’t forget these helpful nationwide programs!

Arkansas offers special programs for first time home buyers.

AFDA Move-Up is a single family loan program that helps first time home buyers and repeat Arkansas buyers obtain an affordable mortgage. You can combine an AFDA move-up mortgage with several other benefits, including the Down Payment Assistance program, the Arkansas Dream Downpayment Initiative or the Mortgage Credit Certificate Program.

AFDA’s Down Payment Assistance Program is a second mortgage with a reduced interest rate. This loan can cover up to $6,000 of down payment and closing costs. It lasts 10 years.

Arkansas Dream Downpayment Initiative (ADDI) is offered to low income first time homebuyers in Arkansas. It can cover up to 6 percent of the home’s purchase price but cannot exceed $10,000 total. It is a second mortgage that you don’t have to pay as long as you live in the home for five years and meet other program requirements.

AFDA Mortgage Credit Certificate Program helps first time homebuyers purchase homes they may not be able to afford otherwise. This program turns 50% of the mortgage interest paid each year into a dollar-for-dollar tax credit as long as the home is the borrower’s principal residence. You could receive up to $2,000 annually from this program!

Arkansas cities and counties offer additional funds for first time home buyers.

Jacksonville provides up to $3,000 in closing cost assistance to buyers who purchase a home in the city limits of Jacksonville. The assistance cannot exceed half of your out-of-pocket costs during the purchase process.

Jonesboro offers a homeownership assistance program for buyers who purchase a home within the city limits of Jonesboro. The home cannot be located within a flood zone and must meet HUD Minimum Housing Quality Standards to qualify. The city website does not elaborate on the type of assistance offered. However, Jonesboro does advertise that they also offer assistance with sewer hook-up costs, home rehabilitation and repair, and demolition.

Little Rock offers a variety of services for homebuyers. One of these is the Save-a-Home program. With this program, the city acquires homes in need of repair, repairs them and resells them to low income homebuyers for up to $10,000 less than the city’s investment.

Pine Bluff offers a homeowner assistance program that helps low and moderate income households with up to $5,000 in assistance ($2,000 toward the down payment and $3,000 toward closing costs).

Texarkana provides up to $10,000 toward the down payment and closing costs for buyers who purchase a home in Texarkana city limits. The assistance is provided as a deferred forgivable loan, which means you don’t have to repay it as long as you live in the home for a set number of years and meet other requirements.

 Get MORE help in Arkansas!

Nicole leads the Low Income Relief team with over 20 years of professional research and writing experience. Nicole started Low Income Relief after a personal experience with poverty. When her husband was medically discharged from the US Army, their family experienced tremendous financial hardship. Nicole was able to gather help from multiple community agencies and move into a nearby low income housing unit in just two weeks! Since then, Nicole has been dedicated to helping low income families in crisis. She regularly spends hundreds of hours combing through countless resources to make sure that Low Income Relief has the most comprehensive and complete resource directories on the internet today. Prior to starting Low Income Relief, Nicole worked as a novelist, journalist, ghostwriter and content creator. Her work has been featured in various print and online publications, including USA Today, eHow, Livestrong, Legal Beagle, The Daily Herald, The Chronicle and more.

Dorothy Majors

Tuesday 19th of March 2019

I would like to ask I'm checking into first time home buyers loans or Grant's with little or no down payment in Augusta arkansas woodruff county. We have found a house that the seller is asking 16,000 but it needs repairs how do we apply for loan when we don't qualify for USDA or fha where or who do we talk to

Riley Thomson

Tuesday 7th of May 2019

Dorothy, The only program I know of is FHA. You could check with your local community action though? Good luck! Let us know if you find something! -Riley