Resources for First Time Buyers in Central Arkansas

Embarking on the journey to buy your first home in Central Arkansas? You’re not alone! The good news is, you don’t have to go it alone. From affordable mortgage options to down payment assistance, tax credits, and legal guidance, here’s everything you need to know to get started with confidence.

Understanding Your Options for First-Time Homebuyers

When it comes to buying your first home, knowing your options can make a world of difference. Let’s dive into some key programs available to you.

1. Arkansas Development Finance Authority (ADFA) Programs — Core Mortgage & Assistance Options

The ADFA is your central hub for state-backed mortgage aid. Here are some programs you should consider:

• StartSmart First-Time Homebuyer Program

This program delivers below-market interest rates on 30-year fixed loans (FHA, VA, RD, or conventional). It's available to applicants with credit scores of 640 or higher, income limits based on household size, and who haven’t owned a primary home in the past three years (with some county exceptions). For more details, check out the Arkansas Development Finance Authority or LendingTree.

• Move-Up Loan Program

This offers a similar structure for first-time or repeat buyers. It features flexible loan types and no prepayment penalty. The maximum purchase price is around $424,100, with an income cap near $142,000. More information can be found on LendingTree and Bankrate.

• Down Payment Assistance (DPA)

This program provides $1,000 to $15,000 via a second mortgage aligned with your first ADFA mortgage. While repayment is required, it helps cover upfront costs like down payments and closing fees. More details are available on LendingTree and The Mortgage Reports.

• Mortgage Credit Certificate (MCC)

This tax credit allows you to claim up to 35% of your annual mortgage interest (capped at $2,000), which reduces your federal tax liability. Learn more at The Mortgage Reports.

2. City of Little Rock Down Payment Assistance

If you’re a first-time buyer in Little Rock, this city-run program offers assistance up to 6% of the home’s purchase price (max $10,000). Loan forgiveness kicks in over time, typically conditional on a five-year residence and completion of an approved counseling course. For more information, check out LendingTree.

3. USDA Section 502 Direct Loans — Rural Arkansas Support

If you're looking to purchase in rural areas around Central Arkansas, the USDA's Section 502 Direct Loan is a valuable option. This program offers long-term, low-interest loans (as low as 5.125% as of August 1, 2025) with terms of up to 33–38 years. It often requires no down payment and is tailored for low- to very-low-income homebuyers. More details can be found at Rural Development.

4. Chenoa Fund — National Down Payment Assistance in Arkansas

The Chenoa Fund provides flexible secondary financing in Arkansas. Sometimes the funding is forgivable, while other times it is repayable, depending on your situation. It’s offered through approved lenders and can be a great supplement to other programs. For more information, visit the Chenoa Fund.

5. Local City-Based Aid — Example: Pine Bluff

Cities like Pine Bluff offer modest, targeted assistance. For instance, their Home Buyer Assistance Program provides $2,000 for down payment and up to $3,000 for closing costs (plus a $500 minimum personal contribution). This is available via a deferred second mortgage, which is repaid only if the home is sold or refinanced. If you're in or near Pine Bluff, these local programs can be a helpful addition. More details can be found at cityofpinebluff-ar.gov.

6. Legal Support via Arkansas Legal Aid

Homebuying can run into legal complications. Legal Aid of Arkansas (formerly part of the Arkansas Legal Services Partnership) offers free or low-cost civil legal assistance. This includes housing-related guidance like contracts, disputes, and homeownership rights. For more information, check out Wikipedia.

Resource Summary Table

Resource	Central Arkansas Applicability	Key Benefits
ADFA (StartSmart, Move-Up, DPA, MCC)	Statewide	Low rates, down-payment aid, tax credits
Little Rock DPA	Little Rock only	Forgivable aid up to $10K
USDA 502 Direct Loan	Rural areas nearby	Low rates with no down payment possible
Chenoa Fund	Statewide via lenders	Flexible secondary funding—often forgivable
Local City Programs	E.g. Pine Bluff	Small one-time aid for down payment & closing costs
Legal Aid	Statewide	Free legal assistance for housing-related issues

How to Leverage These Resources

1. Start at ADFA — They’re the central provider. Use their site to connect with approved lenders and explore both StartSmart and Move-Up programs, plus DPA and MCC options Arkansas Development Finance AuthorityLendingTree.

2. Apply for State & Local Help — If you're buying in Little Rock or Pine Bluff, check out those specific programs next.

3. Consider USDA Loans — Especially if you're buying a home in more rural parts of Central Arkansas.

4. Explore Chenoa Fund — Ask your lender if Chenoa financing is an available option to lower upfront costs even further.

5. Consult Legal Aid if Needed — Especially useful for help with contracts, FHA/VA rules, or closing negotiations.

   
   

Final Encouragement

Buying your first home can feel overwhelming. But in Central Arkansas, you’ve got a robust mix of programs—from state-backed mortgages and down payment help to legal support and city-specific options—that are designed to make homeownership attainable.

Let me know if you'd like help navigating a specific program, connecting with lenders, or tailoring a call-to-action for your blog like downloadable checklists or quick-apply links.

Ready to craft a winning offer? Let’s talk strategy.