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About the ADFA Move-Up Loan Program
The ADFA Move-Up Loan Program is a first mortgage product offered by the Arkansas Development Finance Authority (ADFA) that provides competitive 30-year fixed interest rates to Arkansas homebuyers. Unlike ADFA's StartSmart program, the Move-Up Loan Program does not require borrowers to be first-time homebuyers, making it available to repeat buyers and current homeowners looking to purchase a new primary residence in Arkansas. The program offers FHA, VA, USDA (Rural Development), and conventional loan types with no prepayment penalty.
What makes the ADFA Move-Up Loan Program particularly valuable is that it can be paired with ADFA's Down Payment Assistance (DPA) Program, which provides $1,000 to $15,000 for down payment and closing costs as a 10-year second mortgage. This combination gives Arkansas homebuyers an affordable first mortgage rate plus significant upfront help with out-of-pocket costs. Your qualifying income cannot exceed $142,000, and you need a minimum credit score of 640. The maximum purchase price is set at the Arkansas conventional conforming loan limit.
Compared to the ADFA StartSmart First-Time Homebuyer Program, the Move-Up Loan Program has a higher income limit ($142,000 vs. county-based AMI limits for StartSmart) and no first-time buyer restriction. However, StartSmart offers a below-market interest rate approximately 1% lower than standard market rates, while Move-Up offers competitive but not necessarily below-market rates. Repeat buyers or those whose income exceeds StartSmart limits should look at the Move-Up program as their path to ADFA down payment assistance.
How much assistance
Eligibility
- Income limits: Qualifying income cannot exceed $142,000
- First-time buyer required: No
- Credit score minimum: 640
- Geographic restrictions: Statewide. Property must be primary residence in Arkansas.
- Homebuyer education required: No
How to Apply for ADFA Move-Up Loan Program
Step 1: Check your eligibility
Your qualifying household income cannot exceed $142,000. You need a minimum credit score of 640, and your debt-to-income ratio must be at or below 45%. There is no first-time homebuyer requirement. The property must be your primary residence in Arkansas, and the purchase price cannot exceed the Arkansas conventional conforming loan limit. Eligible property types include single-family homes, condominiums, townhouses, planned unit developments, and certain manufactured homes.
Step 2: Find an ADFA-approved lender
You must apply through a lender approved by the Arkansas Development Finance Authority. Visit adfa.arkansas.gov/find-a-lender to search for participating lenders in your area. You can also contact ADFA directly: Denise Wells, Assistant Single Family Program Manager, at 501-682-5466 or denise.wells@arkansas.gov, or Ginger Burton Duncan, Director of Single Family Outreach, at 501-626-2076 or ginger.burton@arkansas.gov.
Step 3: Apply for your Move-Up first mortgage
Your ADFA-approved lender will process your application for an FHA, VA, USDA, or conventional first mortgage through the Move-Up program. Provide your lender with your last two years of tax returns, recent pay stubs, bank statements, and valid identification. If you want to add ADFA Down Payment Assistance ($1,000 to $15,000), tell your lender at this stage so both loans are processed together.
Step 4: Get pre-approved and find a home
Once pre-approved, search for a home within the program's purchase price limits. The home must be in Arkansas and serve as your primary residence. You must occupy the home within 60 days of closing.
Step 5: Close on your home
Your lender will finalize both your Move-Up first mortgage and any DPA second mortgage at closing. The Move-Up loan is a 30-year fixed-rate mortgage with no prepayment penalty. If you are also using ADFA DPA, that second mortgage has a 10-year term and is included in your monthly payment.
Real Cost Example
On a $247,000 home in Little Rock using an FHA loan, the minimum 3.5% down payment is $8,645. If you pair the ADFA Move-Up first mortgage with the ADFA Down Payment Assistance Program at the maximum $15,000, the DPA fully covers your down payment with $6,355 remaining that can be applied toward closing costs.
Estimated closing costs in Little Rock run $5,000 to $7,500. After applying the $6,355 leftover from the DPA, you would need roughly $0 to $1,145 out of pocket for closing costs. In many cases, the $15,000 DPA could cover your entire down payment and all closing costs on a median-priced Little Rock home.
If you also qualify for the Arkansas Dream Down Payment Initiative (ADDI), you could add up to $10,000 (10% of the sale price) as a forgivable loan on top of the ADFA DPA for a combined $25,000 in assistance. That combination would fully cover down payment and closing costs with money to spare for prepaid expenses like homeowners insurance and property tax escrow.
Combining With Other Programs
The ADFA Move-Up Loan Program is designed to pair directly with the ADFA Down Payment Assistance Program, which provides $1,000 to $15,000 as a 10-year second mortgage. The DPA is only available to borrowers who use either a Move-Up or StartSmart first mortgage, so the two programs are built to work together. Your lender processes both loans simultaneously.
ADFA also allows additional assistance from other programs, agencies, and gifts on top of the DPA. This means you could potentially combine the Move-Up first mortgage and DPA second mortgage with the Arkansas Dream Down Payment Initiative (ADDI), which offers up to 10% of the sale price (maximum $10,000) as a forgivable loan. However, your total debt-to-income ratio including the DPA payment cannot exceed 45%, which may limit how much combined assistance you can receive on a given purchase.
The Move-Up program cannot be combined with the ADFA StartSmart program because both are first mortgage products. You choose one or the other based on your eligibility. First-time buyers who qualify for StartSmart's lower income limits will generally get a better interest rate through StartSmart, while repeat buyers or higher-income borrowers should use Move-Up.
Pros and Cons
The biggest advantage of the ADFA Move-Up Loan Program is accessibility. Because it has no first-time homebuyer requirement and a relatively high income limit of $142,000, it opens ADFA's Down Payment Assistance ($1,000 to $15,000) to repeat buyers who would otherwise have no access to state-level down payment help. The 30-year fixed rate with no prepayment penalty provides predictable payments, and ADFA allows additional assistance from other programs and gifts on top of the DPA, so buyers can layer multiple sources of help.
The main trade-off compared to ADFA StartSmart is the interest rate. StartSmart offers a below-market rate approximately 1% lower than standard rates, which can save thousands over the life of the loan. Move-Up's rate is competitive but not guaranteed to be below market. First-time buyers who meet StartSmart's income limits should generally choose StartSmart for the better rate. Move-Up is the stronger option for repeat buyers, buyers whose income exceeds StartSmart's county-based limits, or buyers who do not want to complete the homebuyer education course that StartSmart requires.
Frequently Asked Questions
Program details last verified: May 12, 2026