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Homebuyer Programs in Fort Smith, AR (2026)

Last updated April 7, 2026 | Population: 89,770 | Median home price: $195,000 | Est. closing costs: $4,000 - $6,000

Skyline of Fort Smith, AR

Fort Smith, the second-largest city in Arkansas and the seat of Sebastian County, sits along the Oklahoma border with a median home price around $195,000 — one of the most affordable markets in the state. Homebuyers here benefit from some of the strongest local assistance programs in Arkansas through the Crawford-Sebastian Community Development Council (CSCDC). The Fort Smith Homebuyers Assistance Program offers up to $10,000 as a forgivable loan, the CSCDC HOME Subsidy provides up to $25,000 toward new home purchases, and the Affordable Housing Program offers a $4,000 grant for first-time buyers. The Southern Bancorp Wealth Builders program adds up to $12,000 in forgivable assistance. At the state level, ADFA provides $1,000 to $15,000 in down payment assistance and the ADDI program offers up to $10,000 as a forgivable loan. By stacking local and state programs, qualified buyers could access over $35,000 in combined assistance toward a home in Fort Smith.

Top Homebuyer Programs in Fort Smith

CSCDC Affordable Housing Program Grant
Type:
Grant
Amount:
$4,000 grant for down payment and closing costs
First-time only:
Yes
CSCDC HOME Subsidy Program
Type:
Forgivable Loan
Amount:
Up to $25,000 HOME subsidy for purchase price reduction on new homes
First-time only:
No
Fort Smith Homebuyers Assistance Program
Type:
Forgivable Loan
Amount:
Up to $10,000 as a forgivable loan for down payment and closing costs
First-time only:
No
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
Arkansas Valley Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home purchase with zero-interest, 15- to 30-year mortgage
First-time only:
Yes
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. Most Fort Smith assistance programs require household income at or below 80% of the area median income. You must be certified as income eligible by CSCDC using the HUD Income Calculator. The ADFA Move-Up loan allows income up to $142,000.

  2. Step 2:

    Complete homebuyer education. Contact the Crawford-Sebastian Community Development Council at 479-785-2303 to enroll in their Homebuyer Education class. All CSCDC programs require this class plus one-on-one pre-purchase budget counseling. The ADDI program requires 8 hours of counseling.

  3. Step 3:

    Contact CSCDC to apply for local programs. They administer the Fort Smith Homebuyers Assistance Program (up to $10,000), the HOME Subsidy (up to $25,000 for new homes), and the Affordable Housing Program ($4,000 grant for first-time buyers). A single application may qualify you for multiple programs.

  4. Step 4:

    Get pre-approved for a mortgage. You must use an approved lender for CSCDC programs. For state programs, work with an ADFA-approved lender who can package the StartSmart or Move-Up first mortgage with $1,000 to $15,000 in DPA.

  5. Step 5:

    Find a home within Fort Smith city limits. The property must pass an environmental review and a City of Fort Smith Minimum Housing Standards Inspection at no cost to the buyer or seller. The ADFA StartSmart program has a $500,000 purchase price limit.

  6. Step 6:

    Submit your applications and budget $500 for out-of-pocket costs required by the Fort Smith Homebuyers Assistance Program. Work with your CSCDC counselor and lender to finalize all program applications before closing.

Frequently Asked Questions

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