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Homebuyer Programs in Sherwood, AR (2026)

Last updated April 7, 2026 | Population: 33,500 | Median home price: $225,000 | Est. closing costs: $4,500 - $7,000

Skyline of Sherwood, AR

Sherwood is a growing suburban city in Pulaski County, located just north of Little Rock and North Little Rock in central Arkansas. With a median home price around $225,000, Sherwood offers an affordable entry point for homebuyers seeking a family-friendly community with easy access to the Little Rock metro area. 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 certified CDFI, offers its Wealth Builders DPA Program with up to $12,000 as a forgivable loan. Habitat for Humanity of Central Arkansas serves Pulaski County with affordable homeownership opportunities, having built over 253 homes in the area. People Trust Community Loan Fund also offers homebuyer assistance loans in central Arkansas. By combining state and nonprofit programs, eligible Sherwood buyers could access over $35,000 in total assistance.

Top Homebuyer Programs in Sherwood

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
People Trust Community Loan Fund Homebuyer Assistance
Type:
Zero-Interest Loan
Amount:
First-time homebuyer assistance loans (amounts vary)
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. Review income limits for ADFA programs, which are based on area median income for Pulaski County. Southern Bancorp's Wealth Builders DPA targets low-to-moderate income and minority homebuyers.

  2. Step 2:

    Complete homebuyer education. Credit Counseling of Arkansas (CCOA) offers HUD-approved homebuyer education courses. You can also call 800-569-4287 to find additional HUD-approved counseling agencies in the Sherwood and Little Rock metro area. Southern Bancorp Community Partners also provides HUD-approved homebuyer education.

  3. Step 3:

    Get pre-approved with an ADFA-approved lender. Visit adfa.arkansas.gov to find participating lenders in the Sherwood area. Arkansas Federal Credit Union has a branch in Sherwood and Telcoe Federal Credit Union also serves the area with mortgage products.

  4. Step 4:

    Explore nonprofit options. Contact Habitat for Humanity of Central Arkansas at 501-251-6757 or visit habitatcentralar.org to learn about their homeownership program serving Pulaski County. Contact Southern Bancorp at banksouthern.com to learn about the Wealth Builders DPA Program. People Trust Community Loan Fund also serves the central Arkansas area with homebuyer assistance.

  5. Step 5:

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

  6. 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.

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