Total Mortgage in Arkansas

ADFA Move-Up Loan Program

Run by the Arkansas Development Finance Authority (ADFA Arkansas), the Move-Up Program is the best for people with low & moderate incomes to buy homes. Some of the features of the program are -

• 30-year fixed mortgage rates in Arkansas
• It can be used with a traditional loan, or a government-guaranteed, or an insured loan.
• You can qualify for even lower mortgage rates if your annual income is less than 80% of your AMI.
• Use this program with other financial assistance programs in Arkansas run by ADFA.

Buyers need to meet the following criteria -

• The home must be your primary residence. It should be a single-family home.
• Taking a homebuyer education course is mandatory, especially if you are a first-time home buyer in Arkansas.
• Your yearly income should be less than $137,000.
• The credit score should be at least 640 or more.
• 45% debt-to-income ratio.

ADFA Down Payment Assistance (DPA)

If you are eligible for a Move-Up loan, you may also qualify for another ADFA Arkansas program, which is the DPA program (Down Payment Assistance in Arkansas). Homebuyers get closing cost assistance between $1,000 and $15,000. This is a second mortgage with the same mortgage rates as the Move-up program, but it needs to be repaid in 10 years.

Arkansas Dream Down Payment Initiative (ADDI)

This is another exciting offer from ADDI. Under this Arkansas Dream down payment initiative (ADDI), homebuyers can get up to 10% of the purchase price of their home or up to $10,000. It is for low-income borrowers. The US Department of Housing and Urban Development funds the Arkansas Dream down payment initiative.

Key features of the program are -

• It is a second loan assistance.
• It is forgivable after 5 years.
• Requires no monthly payment.
• First-time home buyers in Arkansas can use this program to obtain free MCC.
• The income limit for this program is fixed.
• The purchase price limit is location-based.
• Applicants need to finish an eight-hour homebuyer education course till the loan closes.

Mortgage Credit Certificate (MCC)

Applying for an MCC helps lower the tax bills. This is available in conjunction with the ADFA Move-Up loan program. It is available as a first-time home buyer loan in Arkansas. It is also available to veterans and their better halves and for people interested in buying a home in an area in the state that is IRS-marked as an 'area of chronic economic distress.'

Key features of the program are -

• Annual tax credit up to 35% of the interest
• Up to $2,000 annually as tax credit
• These facilities are available until the homebuyer occupies the property as their primary residence.
• A recapture tax applies if the homebuyer sells the home within the first nine years. A tax expert is the right person to speak to to understand the implications.

Qualification criteria for homebuyers -

• A household income limit is applicable depending on the family's size and the county's location.
• The purchase price of the property should not be more than $300,000.
• It is essential to apply for MCC to get maximum benefits before closing the Mortgage.
• 0.50% of the Mortgage is payable as a one-time issuance fee.

Little Rock Down Payment Assistance Program

Little Rock Down City offers financial assistance in Arkansas to buy a suitable property within the city limits. Down payment assistance is up to 6% of the property purchase price up to $10,000. It is ideal for low- and moderate-income groups, especially first-time homebuyers in Arkansas. Forgivable after five years, this loan is available only through lenders physically present in Arkansas.

Jonesboro Homeownership Assistance Program

This program is aimed at low- and moderate-income first-time home buyers in the city of Jonesboro. Under this program, homebuyers are eligible for down payment assistance and closing costs in Arkansas. The funds are directly transferred to the applicant's title company. It is imperative that the HUD Housing Quality Standards and federal income rules are met. Homebuyers need to finish a HUD-approved education course for homebuyers.

FHA Loans

The Federal Housing Administration offers mortgage loans funded by private mortgage lenders. The minimum credit score is 580, and down payment assistance is up to 3.5%. If the credit score is 500 or lower, buyers can get 10% down payment assistance.

VA Loans

This loan is for veterans, active service members, and spouses. It is one of the most popular programs with first-time homebuyers in Arkansas, as the rates are competitive and no down payment is required.