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Homebuyer Programs in Little Rock, AR (2026)

Last updated April 7, 2026 | Population: 203,842 | Median home price: $247,000 | Est. closing costs: $5,000 - $7,500

Skyline of Little Rock, AR

Little Rock, the capital of Arkansas and the seat of Pulaski County, is a growing metro with a median home price around $247,000 — well below the national average. Homebuyers in Little Rock can access several layers of assistance, including the City of Little Rock Down Payment Assistance Program offering up to $5,000 as a forgivable loan, the Southern Bancorp Wealth Builders program providing up to $12,000 in forgivable assistance, and the University District Development Corporation program with up to $20,000 for eligible buyers. At the state level, ADFA offers $1,000 to $15,000 in down payment assistance and the ADDI program provides up to $10,000 as a forgivable loan. By stacking local and state programs, qualified buyers could potentially access over $25,000 in combined assistance.

Top Homebuyer Programs in Little Rock

City of Little Rock Down Payment Assistance Program
Type:
Forgivable Loan
Amount:
Up to 6% of the purchase price, not to exceed $5,000
First-time only:
Yes
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
University District Development Corporation First-Time Homebuyer Program
Type:
Forgivable Loan
Amount:
Up to $20,000 for down payment and closing costs
First-time only:
Yes
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 programs require household income at or below 80% of the area median income for Pulaski County. Some programs like the ADFA Move-Up loan allow income up to $142,000. Review each program's specific requirements.

  2. Step 2:

    Complete homebuyer education. Contact Southern Bancorp Community Partners for HUD-approved homebuyer counseling, or reach out to the Central Arkansas Team Care for the Homeless (CATCH), a HUD-approved counseling agency in Little Rock. The ADDI program requires 8 hours of counseling.

  3. Step 3:

    Contact the City of Little Rock Housing and Neighborhood Programs at 501-371-6825 to check the current status and availability of the city's down payment assistance program.

  4. Step 4:

    Get pre-approved for a mortgage. 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. For the Southern Bancorp Wealth Builders program, contact Southern Bancorp Community Partners directly.

  5. Step 5:

    Find a home within program limits. The ADFA StartSmart program has a $500,000 purchase price limit. The city DPA program requires the home to be within Little Rock city limits. The UDDC program is limited to homes within the University District.

  6. Step 6:

    Submit your applications. Work with your lender and housing counselor to submit applications for all programs you qualify for. Processing times vary, so apply early in your homebuying process.

Frequently Asked Questions

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