See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated April 7, 2026

Homebuyer Programs in Hot Springs, AR (2026)

Population: 38,000 | Median home price: $230,000 | Est. closing costs: $4,500 - $7,000

Hot Springs is the county seat of Garland County in central Arkansas, famous for Hot Springs National Park and its historic bathhouse district along Bathhouse Row. With a median home price around $230,000, the city offers relatively affordable homeownership compared to many national markets. The ADFA Down Payment Assistance Program provides $1,000 to $15,000 for down payment and closing costs, while the Arkansas Dream Down Payment Initiative offers up to $10,000 as a forgivable loan. Southern Bancorp, a CDFI headquartered in the region, offers its Wealth Builders Down Payment Assistance Program with up to $12,000 as a forgivable loan. Garland County Habitat for Humanity has built over 157 homes locally since 1995. By stacking state and nonprofit programs, eligible Hot Springs buyers could access over $35,000 in combined assistance.

State Programs in Arkansas

Program Name	Type	Amount	First-Time Only	Details
ADFA Down Payment Assistance Program	Repayable Loan	$1,000 to $15,000 for down payment and closing costs	No	View →
ADFA Move-Up Loan Program	Zero-Interest Loan	Affordable 30-year fixed-rate mortgage with competitive interest rates	No	View →
ADFA StartSmart First-Time Homebuyer Program	Zero-Interest Loan	Below-market interest rate (approximately 1% below market rate) on a 30-year fixed mortgage	Yes	View →
Arkansas Dream Down Payment Initiative (ADDI)	Forgivable Loan	Up to 10% of the sale price, not to exceed $10,000	Yes	View →

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

Federal Programs

Program Name	Type	Amount	First-Time Only	Details
FHA Loans	Government-Insured Mortgage	Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)	No	View →
Good Neighbor Next Door (HUD)	Government Property Sale Program	50% discount off the list price of HUD-owned homes	Yes	View →
Home Possible Mortgage (Freddie Mac)	Government-Guaranteed Mortgage	Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment	No	View →
HomeReady Mortgage (Fannie Mae)	Government-Guaranteed Mortgage	Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment	No	View →
HUD $100 Down Program	FHA-Financed HUD REO Purchase	Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.	No	View →
USDA Rural Development Loans	Government-Guaranteed Mortgage	100% financing (no down payment required); loan amount up to appraised value	No	View →
VA Loans	Government-Guaranteed Mortgage	No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)	No	View →

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

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

Nonprofit Programs

Program Name	Type	Amount	First-Time Only	Details
Garland County Habitat for Humanity Homeownership Program	Zero-Interest Loan	Affordable home purchase with zero-interest mortgage and reduced purchase price	No	View →
Southern Bancorp Wealth Builders DPA Program	Forgivable Loan	Up to $12,000	No	View →

Garland County Habitat for Humanity 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

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13 programs available in Hot Springs. See which ones you qualify for.

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How to Apply

Step 1: Check your eligibility. Review income limits for ADFA programs, which are based on area median income for Garland County. Southern Bancorp's Wealth Builders DPA targets low-to-moderate income and minority homebuyers.

Step 2: Complete homebuyer education. Southern Bancorp Community Partners offers HUD-approved homebuyer education through their certified housing counselors. You can also call 800-569-4287 to find additional HUD-approved counseling agencies in the Hot Springs area.

Step 3: Get pre-approved with an ADFA-approved lender. Visit adfa.arkansas.gov to find participating lenders in the Hot Springs area who can help you access the ADFA Down Payment Assistance Program and StartSmart mortgage. Southern Bancorp also offers affordable mortgage products including HomeRise 100, which allows a home purchase with as little as $1,000.

Step 4: Explore nonprofit options. Contact Garland County Habitat for Humanity at 501-623-5600 or email info@garlandcountyhabitat.org to learn about their homeownership program. Contact Southern Bancorp at banksouthern.com to learn about the Wealth Builders DPA Program.

Step 5: Find a home within program limits. Work with your lender to identify properties that meet ADFA purchase price requirements and any additional program guidelines for Garland County.

Step 6: Submit your application and close. Your ADFA-approved lender will guide you through the down payment assistance application as part of your mortgage process. Allow 30 to 60 days for full processing.

Frequently Asked Questions

How much down payment assistance can I get in Hot Springs?+

Hot Springs buyers can stack multiple programs for significant assistance. The ADFA Down Payment Assistance Program provides $1,000 to $15,000 for down payment and closing costs. The Arkansas Dream Down Payment Initiative (ADDI) offers up to $10,000 as a forgivable loan over 5 years. Southern Bancorp's Wealth Builders DPA Program provides up to $12,000 as a forgivable loan. Combined, eligible buyers could access over $35,000 in assistance.

Do I have to be a first-time homebuyer to qualify?+

It depends on the program. The ADFA StartSmart program requires first-time buyer status (or not having owned a home in the past 3 years), while the ADFA Move-Up program is available to repeat buyers. The ADFA Down Payment Assistance Program is available with either first mortgage product. Southern Bancorp's Wealth Builders DPA focuses on LMI and minority homebuyers regardless of first-time buyer status.

What is the maximum home price I can pay using these programs?+

ADFA programs have purchase price limits that vary by county and are updated annually. Contact an ADFA-approved lender for current Garland County limits. Southern Bancorp's programs may have separate guidelines. Contact them directly for current details.

What homebuyer education is required?+

ADFA programs require completion of a HUD-approved homebuyer education course. Southern Bancorp Community Partners provides HUD-approved homebuyer education through their certified housing counselors as part of the Wealth Builders DPA Program. You can also call 800-569-4287 to find HUD-approved counseling agencies near Hot Springs.

Does Habitat for Humanity build homes in Hot Springs?+

Yes. Garland County Habitat for Humanity has been building homes in the area since 1995 and has completed over 157 houses. They build 6 to 10 homes per year and offer zero-interest mortgages with affordable monthly payments. Applicants must fall between 30% and 60% of Area Median Income and complete 300 hours of sweat equity. Contact them at 501-623-5600 or email info@garlandcountyhabitat.org.

What is the Southern Bancorp Wealth Builders DPA Program?+

Southern Bancorp Community Partners, a CDFI, offers the Wealth Builders for Everyone Down Payment Assistance Program providing up to $12,000 as a forgivable loan for down payment, prepaids, and closing costs. The loan has a zero percent interest rate and zero monthly payment, with forgiveness at 20% per year over 5 years. The program includes HUD-approved homebuyer education and targets low-to-moderate income and minority homebuyers.

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