ADFA StartSmart First-Time Homebuyer Program
Funding status: Active
How much assistance
Below-market interest rate (approximately 1% below market rate) on a 30-year fixed mortgage (Zero-Interest Loan)
Eligibility
- Income limits: Varies by county and household size based on Area Median Income (AMI)
- Purchase price limit: $500,000
- First-time buyer required: Yes — Must not have owned a principal residence in the past 3 years. Exemptions for buyers in federally targeted counties and qualifying veterans.
- Credit score minimum: 640
- Geographic restrictions: Statewide. Property must be in Arkansas.
- Homebuyer education required: Yes
How to Apply for ADFA StartSmart First-Time Homebuyer Program
Step 1: Contact an ADFA-approved lender to apply. The lender will determine eligibility based on income, credit score, and first-time buyer status. Complete required homebuyer education before closing.
Notes
This is a below-market-rate first mortgage product, not a traditional zero-interest loan. Categorized as Zero-Interest Loan due to database constraints. Actual rate is approximately 1% below market.