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Homebuyer Programs in Cabot, AR (2026)

Last updated April 8, 2026 | Population: 27,190 | Median home price: $230,000 | Est. closing costs: $4,500 - $7,000

Skyline of Cabot, AR

Cabot is a fast-growing community in Lonoke County about 25 miles northeast of Little Rock, with a median home price around $230,000. While the city does not currently offer its own municipal down payment assistance program, Cabot buyers can access substantial help through state and nonprofit programs. The ADFA Down Payment Assistance Program provides $1,000 to $15,000 toward down payment and closing costs, and the Arkansas Dream Down Payment Initiative (ADDI) offers up to 10% of the purchase price as a forgivable loan, capped at $10,000. The Southern Bancorp Wealth Builders DPA Program provides up to $12,000 in forgivable loans, and Habitat for Humanity of Central Arkansas serves the Cabot area with affordable homeownership opportunities. By combining state and federal programs, Cabot buyers can potentially access over $25,000 in total assistance.

Top Homebuyer Programs in Cabot

FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No
Habitat for Humanity of Central Arkansas Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with zero-interest mortgage and reduced purchase price
First-time only:
No
Southern Bancorp Wealth Builders DPA Program
Type:
Forgivable Loan
Amount:
Up to $12,000
First-time only:
No
ADFA Down Payment Assistance Program
Type:
Repayable Loan
Amount:
$1,000 to $15,000 for down payment and closing costs
First-time only:
No
ADFA Move-Up Loan Program
Type:
Zero-Interest Loan
Amount:
Affordable 30-year fixed-rate mortgage with competitive interest rates
First-time only:
No
ADFA StartSmart First-Time Homebuyer Program
Type:
Zero-Interest Loan
Amount:
Below-market interest rate (approximately 1% below market rate) on a 30-year fixed mortgage
First-time only:
Yes
Arkansas Dream Down Payment Initiative (ADDI)
Type:
Forgivable Loan
Amount:
Up to 10% of the sale price, not to exceed $10,000
First-time only:
Yes

How to Apply

  1. Step 1:

    Check your eligibility. Review income limits for Lonoke County under the ADFA programs. Federal Income Guidelines and Area Median Income thresholds determine eligibility for most state assistance programs.

  2. Step 2:

    Complete homebuyer education. A HUD-approved homebuyer education course is required for most state programs. Contact the Arkansas Development Finance Authority at (501) 682-5900 for a list of approved providers, or reach out to Habitat for Humanity of Central Arkansas at (501) 251-6757.

  3. Step 3:

    Get pre-approved through an ADFA-approved lender. ADFA maintains a network of participating lenders who can originate StartSmart and Move-Up loans with down payment assistance built in.

  4. Step 4:

    Explore nonprofit options. Contact Southern Bancorp about the Wealth Builders DPA Program for up to $12,000 in forgivable loan assistance. Habitat for Humanity of Central Arkansas also serves the Cabot area with affordable homeownership programs.

  5. Step 5:

    Find a home within program limits. Ensure the property meets any purchase price limits for Lonoke County and qualifies under the programs you are applying for.

  6. Step 6:

    Submit your applications and close. Your ADFA-approved lender will coordinate the DPA application with your mortgage. Assistance funds are disbursed at closing.

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