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Get Matched Free →Homebuyer Programs in Hot Springs, AR (2026)
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.
Top Homebuyer Programs in Hot Springs
| 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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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 → |
| 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 → |
| 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 → |
- 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
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home purchase with zero-interest mortgage and reduced purchase price
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $12,000
- First-time only:
- No
- Type:
- Repayable Loan
- Amount:
- $1,000 to $15,000 for down payment and closing costs
- First-time only:
- No
- Type:
- Zero-Interest Loan
- Amount:
- Affordable 30-year fixed-rate mortgage with competitive interest rates
- First-time only:
- No
- Type:
- Zero-Interest Loan
- Amount:
- Below-market interest rate (approximately 1% below market rate) on a 30-year fixed mortgage
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to 10% of the sale price, not to exceed $10,000
- First-time only:
- Yes
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.