Down payment assistance in Arkansas
Arkansas's primary statewide down payment assistance program, run by Arkansas Development Finance Authority. Numbers and eligibility reflect the program's published 2025 guidelines.
ADFA Move-Up Choice
Second mortgage- Maximum assistance
- Up to $15,000 as a 10-year second lien
- Income limit
- Up to $130,000
- Home price limit
- Up to $499,300
- First-time buyer
- Not required
- Eligible loan types
- FHA, VA, USDA, Conventional
- •Second lien is amortized over 10 years at the same rate as the first.
- •Combined DTI is reviewed including the second-lien payment.
How Arkansas DPA fits into your purchase
Down payment assistance reduces the cash you need at the closing table. Arkansas's ADFA Move-Up Choice pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.
Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.
Common questions
Arkansas's primary statewide DPA is ADFA Move-Up Choice from Arkansas Development Finance Authority. Up to $15,000 as a 10-year second lien. Many Arkansas cities and counties also run additional DPA layered on top.
No. The ADFA Move-Up Choice is open to both first-time and repeat buyers, subject to income and home-price limits.
Yes. ADFA Move-Up Choice works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.
Yes. A second-mortgage DPA has a monthly payment, and that payment is included in your debt-to-income ratio when the lender qualifies you.
Deferred and second-mortgage DPAs are generally repaid in full when you sell, refinance, or pay off the first mortgage.