First-Time Homebuyer Programs in Arkansas You Should Know About in 2026

One of the questions I get asked most often — usually by buyers who feel like homeownership is just out of reach — is whether there’s any help available for the down payment. The honest answer: yes, and most buyers have no idea how much.

Arkansas has several programs designed specifically to help first-time and lower-to-moderate income buyers get into a home. Some offer outright grants. Some offer low-interest second loans for your down payment. And some can be stacked with federal programs like FHA, VA, and USDA to dramatically reduce what you need to bring to the table.

Here’s what’s available in 2026 and who qualifies.

First, Who Counts as a “First-Time Buyer”?

This is broader than most people think. Under most programs, you qualify as a first-time homebuyer if you haven’t owned a primary residence in the past three years. That means:

• You’ve never owned a home before
• You owned a home in the past but haven’t owned one in the last 3 years
• You’re a single parent who only owned a home with a former spouse
• You’re a displaced homemaker who only owned a home with a spouse

If you think you don’t qualify, it’s worth double-checking. Many buyers who assume they’re ineligible actually aren’t.

Arkansas Development Finance Authority (ADFA) Programs

The Arkansas Development Finance Authority is the state’s primary source of homebuyer assistance programs. Here are the key programs available in 2026:

ADFA Move-Up Loan Program

This is Arkansas’s primary first mortgage program for qualified buyers. It offers below-market interest rates on 30-year fixed mortgages paired with down payment assistance. The Move-Up Program can be combined with FHA, Conventional, VA, and USDA loans.

Key features:

• Below-market fixed interest rates
• Available statewide, including all of Benton and Washington County
• Income and purchase price limits apply (vary by county)
• Minimum credit score: typically 640+
• Required homebuyer education course

ADFA Down Payment Assistance (DPA) Program

This is where real money comes in. The ADFA DPA Program provides up to $15,000 as a second mortgage at 0% interest to cover your down payment and/or closing costs. The second loan is repayable when you sell, refinance, or pay off the first mortgage.

This program is layered on top of the Move-Up first mortgage — so you’re getting a below-market rate on your primary loan plus up to $15,000 toward your down payment. For a first-time buyer putting 3.5% down on a $280,000 home in Rogers, that’s $9,800 of your down payment covered.

ADFA Mortgage Credit Certificate (MCC)

The MCC is a federal tax credit — not a deduction, an actual credit — that reduces your federal income tax liability by a percentage of the mortgage interest you pay each year. In Arkansas, the MCC allows eligible buyers to claim up to 50% of their mortgage interest as a tax credit (up to $2,000/year) for the life of the loan.

This is often overlooked because it’s not immediate cash, but the cumulative tax savings over the life of a 30-year mortgage can be significant. And it’s stackable with other assistance programs.

Federal Programs That Work Alongside State Assistance

State programs don’t replace federal programs — they complement them. Here’s how they interact:

• FHA + ADFA DPA: An FHA loan requires only 3.5% down. Pair it with up to $15,000 from ADFA and you may be able to buy a home with very little out of pocket — the DPA can cover most or all of your down payment.
• USDA + ADFA: USDA loans require zero down payment. ADFA assistance can be used toward closing costs, reducing what you need to bring to the table even further.
• VA + ADFA: VA loans also require zero down. ADFA programs can help cover the VA funding fee or closing costs for eligible veterans.

Income and Purchase Price Limits — What to Know

ADFA programs have income limits that vary by county and household size, and purchase price caps. For Benton County (Rogers, Bentonville) and Washington County (Fayetteville, Springdale), limits are generally higher than rural counties to reflect local market conditions.

Limits change annually, so I always pull the current figures for your specific situation rather than quoting numbers that may be outdated. The general principle: these programs are designed for buyers in the low-to-moderate income range — typically families earning under $100,000–$130,000 per year in NWA, depending on household size.

The Homebuyer Education Requirement

Most ADFA programs require completion of an approved homebuyer education course before closing. This is a one-time requirement, typically completed online in a few hours. It covers budgeting, the homebuying process, and maintaining your home. Most buyers find it genuinely useful — especially first-time buyers who want to understand what they’re getting into.

How Kiley Helps You Stack Programs

The most powerful part of these programs is combining them. A first-time buyer in Rogers could potentially layer:

• FHA loan at a below-market rate (ADFA Move-Up)
• Up to $15,000 toward down payment (ADFA DPA)
• Annual tax savings on mortgage interest (MCC)

That combination can mean buying a home with significantly less money upfront — and lower net costs for years afterward.

Walking through which programs apply to your specific situation — income, household size, target price range, credit — is exactly what I do in a free consultation. There’s no obligation. If you qualify for assistance, I’ll tell you. If you don’t, I’ll tell you that too and we’ll find the best path forward from there.

Book a free call and let’s figure out which programs you qualify for. There might be more help available than you think.

Kiley Conner | NMLS# 1453865 | Benchmark Mortgage | Licensed in AR, MO, KS & OK | Program details, income limits, and purchase price caps are subject to change. Contact Kiley for current program availability and eligibility requirements. ADFA programs subject to lender and state approval.