From the scenic Ozarks to the lively streets of Little Rock, Arkansas is an inviting place to call home. With a low cost of living and a strong community, it’s no wonder many want to settle here. Still, rising home prices and interest rates can make saving for a down payment tough, especially for first-time buyers.
Fortunately, Arkansas offers a variety of down payment assistance (DPA) programs to help bridge the gap. From statewide support to local initiatives, these programs can make homeownership more accessible across the state.
This guide highlights some of the most widely available and valuable DPA programs in Arkansas. While it doesn’t cover every possible program, we’ve done our best to showcase those with accessible eligibility requirements. We’ll also continue to update this page as program details evolve.
But before we get into the programs, understanding the term Area Median Income (AMI) is essential when evaluating whether you qualify for assistance.
What Is AMI?
Your income alone doesn’t determine whether you qualify for down payment assistance. Where you plan to buy matters, too. Many programs compare your household’s earnings with Area Median Income (AMI), a local benchmark that marks the middle of the income range: half of households earn above it and half earn below it.
Example: Suppose a program accepts buyers earning up to 80% of AMI. If the area’s AMI is $90,000, the income ceiling would be $72,000. A household earning $68,000 would could be eligible for assistance, depending on the program’s other requirements.
You can explore income benchmarks by property address with Fannie Mae’s AMI lookup tool.
Statewide Down Payment Assistance Programs
Arkansas provides statewide support through the Arkansas Development Finance Authority (ADFA) and participating Federal Home Loan Bank of Dallas (FHLB Dallas) member institutions.
ADFA Down Payment Assistance Program
The ADFA Down Payment Assistance Program offers between $1,000 and $15,000 in down payment and closing cost help in the form of a 10-year repayable second mortgage, which must be paired with an ADFA first mortgage loan. The assistance loan has monthly payments and the same interest rate as your ADFA first mortgage.
Eligibility: Borrowers must qualify for either the ADFA StartSmart program or the Move-Up program, use an ADFA-approved lender, have a credit score of at least 640, meet the applicable income limits, and use the home as a primary residence.
Homebuyer Equity Leverage Partnership (HELP)
The Homebuyer Equity Leverage Partnership (HELP) provides up to $20,000 in grant funds for down payment and closing costs in Arkansas through participating FHLB Dallas member institutions. The grant comes with a five-year ownership requirement. Selling, transferring ownership, or refinancing during that time may mean repaying some of the assistance.
Eligibility: Buyers must qualify as first-time homebuyers, have household income at or below 80% of AMI, complete homebuyer counseling, contribute at least $500 of their own funds, and purchase a primary residence through the program’s participating lending network.
Down Payment Assistance Programs by City
Several Arkansas cities provide local DPA programs, often through federal funding or nonprofit partnerships.
City of Little Rock Down Payment Assistance Program
The City of Little Rock DPA offers up to 6% of the purchase price (up to $10,000) as a forgivable loan for first-time buyers. The loan is forgiven in equal monthly amounts over five years of continued ownership and occupancy.
Eligibility: Applicants must be first-time buyers earning no more than 80% of AMI, purchase a home within city limits, complete a city-approved homebuyer education course, and the home must pass a city housing inspection.
City of Little Rock CDBG-DR Homebuyer Assistance Program
The City of Little Rock CDBG-DR Homebuyer Assistance Program offers separate assistance funded through the city’s tornado-recovery allocation. Buyers can receive up to 8% of the purchase price, capped at $15,000, through a loan forgiven over five years of continued ownership and occupancy. Selling or moving out early can require repayment of the unforgiven amount.
Eligibility: Applicants must be first-time buyers with household income at or below 150% of AMI, qualify for a mortgage through a participating lender, complete approved homebuyer education, and purchase a home within Little Rock that passes the city’s inspection.
Fort Smith Homebuyers Assistance Program (FSHAP)
Fort Smith’s FSHAP provides up to $10,000 in down payment/closing cost help and up to $40,000 to reduce the purchase price for affordability. The assistance carries a deed restriction requiring continued owner occupancy for 5, 10, or 15 years, depending on the amount received. Selling before that period ends can require repayment of part of the assistance.
Eligibility: Applicants must meet the program’s HUD household-income limits, complete homebuyer education and individual counseling, use an approved lender, buy a primary residence within Fort Smith city limits, and meet purchase price caps ($160,000 for existing homes or $195,000 for completed new homes).
City of Jonesboro Homeownership Assistance Program
The Jonesboro Homeownership Assistance Program provides up to $5,000 in down payment/closing cost help, secured by a forgivable lien. Applicants agree to live in the home for five years.
Eligibility: Applicants must be first-time buyers meeting the program’s HUD household-income limits, complete homebuyer education, and purchase a home within city limits (not in a flood zone).
City of Pine Bluff Home Buyer’s Assistance Program
The Pine Bluff Home Buyer’s Assistance Program offers up to $5,000 total in assistance: $2,000 toward the down payment and $3,000 for eligible closing costs, excluding prepaid items. The assistance is a 0% deferred second mortgage that generally doesn’t have to be repaid if you own and live in the home for five years. New homes built with HOME funding have a 20-year requirement. Selling, transferring ownership, or refinancing early can trigger repayment.
Eligibility: Buyers must earn no more than 80% of AMI, contribute at least $500 of their own funds, complete housing counseling, and purchase a home in Pine Bluff priced at $150,000 or less that meets HUD property standards.
Additional Down Payment Assistance Programs
Below are other active programs that weren’t highlighted above but may still be worth exploring.
State Programs
City Programs
Final Thoughts
Down payment assistance can open the door to homeownership for many Arkansas residents who qualify based on income, location, or buyer status. Whether you’re a first-time buyer or simply need help covering upfront costs, these programs can make a real difference. Stay informed about current mortgage rates, explore different loan options, and don’t forget to experiment with our loan calculators to see what works best for your budget. With the right resources, your path to homeownership in Arkansas could be closer than you think.
Check with the organization directly for the most recent guidelines. While programs were fact-checked at the time of writing, requirements change often, and programs become unavailable when funds are exhausted.
