Arkansas First-Time Home Buyer Programs 2026
StartSmart and Move-Up, the repayable assistance second mortgage that is often mistaken for a grant, and the county income limits that decide which program you qualify for.
Arkansas StartSmart program
StartSmart is the Arkansas Development Finance Authority’s first-time buyer mortgage. It is funded with IRS tax-exempt mortgage revenue bonds, and ADFA passes that funding advantage through as a rate roughly 1% below market.
| Feature | Detail |
|---|---|
| Loan types | FHA, VA, RD, or Freddie Mac Conventional (HFA Advantage) |
| Term | 30-year fixed rate with no prepayment penalty |
| Interest rate | Approximately 1% below market rate, subject to change without notice |
| Minimum credit score | 640 |
| Purchase price limit | $500,000 |
| Occupancy | Must be your primary residence |
StartSmart must be originated through an ADFA-approved lender. The rate advantage comes from the bond funding, so it is not something a lender can match outside the program.
Move-Up for repeat buyers
Move-Up exists for buyers who do not meet the first-time test. It pairs with the same down payment assistance, but it is priced differently — ADFA makes no below-market rate claim for it.
| Feature | Detail |
|---|---|
| First-time buyer required | No |
| Qualifying income limit | $142,000 statewide |
| Minimum credit score | 640 |
| Maximum purchase price | The Arkansas conventional conforming loan limit |
| Loan types | FHA, VA, Conventional and RD |
Down payment and closing cost assistance
ADFA’s Down Payment Assistance is available with either first mortgage, and it is important to understand what it is before you budget around it.
| Assistance | Amount | Repayment |
|---|---|---|
| ADFA Down Payment Assistance | $1,000 to $15,000 | Repayable second mortgage, 10-year amortization at the first mortgage rate |
This is not a grant and it is not forgiven. ADFA’s own program guidelines title it a subordinate repayable mortgage loan, it amortizes over ten years, and it carries a 4% late payment fee. There is no prepayment penalty. Funds can cover down payment, closing costs, principal reduction and cash back for items paid outside closing, but they cannot be used for repairs or to pay off debt to qualify.
Program terms are published by the Arkansas Development Finance Authority.
Income and purchase price limits
Two limits decide eligibility, and the StartSmart income limit is the one that varies — it is set county by county and splits on household size.
| Limit | Amount | Notes |
|---|---|---|
| Purchase price limit | $500,000 | Stated on ADFA’s StartSmart income limit table, effective June 1, 2026 |
| StartSmart income limit, 1–2 person | $85,320–$128,280 | Varies by county; targeted counties are higher |
| StartSmart income limit, 3+ person | $99,540–$149,660 | Varies by county; targeted counties are higher |
| Move-Up income limit | $142,000 | Statewide; no first-time buyer requirement |
The spread is wide because targeted counties are allowed higher limits than non-targeted ones. Most rural Arkansas counties sit at the bottom of the band, while Madison County carries the highest figures in the state. Your lender checks the applicable county and household size against ADFA’s current table before you write an offer.
Who counts as a first-time buyer
ADFA’s test is not whether you have never owned a home. It is whether you have owned your principal residence in the last three years.
| Test | Requirement |
|---|---|
| Ownership | Must not have owned your principal residence for three years prior to closing the loan |
| Targeted county exception | Buying in one of 30 federally targeted counties waives the requirement entirely |
| Veteran exception | Veterans and spouses of veterans with proper documentation are exempt |
| Credit | Minimum score of 640 |
| Lender | Must use an ADFA-approved lender |
The 30 targeted counties are Bradley, Calhoun, Chicot, Clark, Cleburne, Columbia, Conway, Crawford, Crittenden, Cross, Dallas, Desha, Drew, Jefferson, Lafayette, Lee, Lincoln, Madison, Mississippi, Monroe, Nevada, Ouachita, Perry, Phillips, Prairie, St. Francis, Scott, Searcy, White, Woodruff. Buying in any of them removes the first-time requirement, which makes StartSmart available to repeat buyers who would otherwise need Move-Up.
How to apply
| Step | What happens |
|---|---|
| 1. Check the county limits | Confirm your household income against the StartSmart figure for the county you are buying in, and check whether that county is targeted |
| 2. Choose the program | StartSmart if you meet the first-time test or are buying in a targeted county; Move-Up otherwise |
| 3. Find an approved lender | ADFA programs are only available through participating lenders, not directly from the agency |
| 4. Decide on assistance | Add the down payment assistance second mortgage if you need it, understanding it is repaid over ten years |
| 5. Close | Your lender funds the first and second mortgage together at closing |
