The Arkansas Development Finance Authority (ADFA) provides first time home buyer grants up to $10,000 to Arkansas residents who meet the program requirements.
Under this grant program, a first-time homebuyer is an individual and his or her spouse who have not owned a home during the three-year period prior to purchase of a home. In addition, the unit must meet all applicable State and local building codes. The purchase price cannot exceed the 95% of area median purchase price of existing housing and/or new constructed housing in the area. ADFA will provide the ADDI funds in the form of a forgivable loan (soft second mortgage) with no interest and no monthly payments.
The ADDI amount may not exceed six percent (6%) or $10,000, whichever is less based upon the subsidy layering/underwriting review, of the purchase price for downpayment and closing costs assistance to eligible homebuyers. The loan turns into a grant over a period of time.
The assistance will be forgiven in equal annual installments over the period of affordability (5 years). The homebuyer must maintain the house as their principal residence for the full affordability period (5 years).
To find out more about this exciting grant program, visit the ADFA webpage here, and/or contact them directly at:
Dean Norman 501-682-5935
Barbara Whittaker 501-682-5930
Rachae Frye 501-682-5933