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!
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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 totol. 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.
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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 also.
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.