The state of Arkansas offers several programs that help home buyers to go through the process with as little hassle as possible. The Arkansas down payment assistance programs make sure that even the middle class and less than able to afford people can be home owners and have a residential security in their lives. New home owners are automatically qualified to make use of the Arkansas down payment assistance programs for their benefits and own the property with the help of the program provided by the state.
The Arkansas down payment assistance program also connects the inexperienced home buyer with a proper realtor in the area in which you want to own a home and also the realtors who specialize in making new home owners feel safe and secure with the transactions involved when buying a property or house in the state of Arkansas. The lenders that assist any home owner with the program will evaluate the home buyer’s loan application firstly, and notice the income and debts in the past, the assets already owned and its values, the credit score of the loan applicant and the property they want to purchase after the loan has been approved.
The pre-approval of a loan will be given only after all the criteria have been met. Pre-approval of a loan practically means that the seller of the house or property has assurance from the loan giver that the money will be paid duel and that no confusion or cheating would happen in terms of money. The usual amount of money that can be borrowed on purchase is twenty per cent of the house value, but some Arkansas down payment assistance programs allow flexibility on the percentage depending on the borrowers’ credit scores, past debt clearances and income per year.
Below are a list of mortgages that allow down payment assistance programs.
No Down Payment Mortgages – mortgages that require no down payment
USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.
Low Down Payment Mortgages – mortgages that require up to 3.5% down payment
FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.
Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.
The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.
Arkansas Down Payment Assistance Programs:
Down Payment Assistance Program This Arkansas down payment assistance comes in the form of a 10 year amortizing second mortgage loan at a 4 percent interest rate. The program offers up to $6,000 in Arkansas down payment and closing cost assistance.
Dream Down Payment Initiative This Arkansas down payment program is designed for low income first time home buyers purchasing a single family home in the state. ADDI funds are granted in the form of a forgivable second mortgage up to 6 percent, or $10,000, of the purchase price (whichever is smaller).
Jacksonville Buyers Assistance If you desire to live in the city limits of Jacksonville, this program will pay half of your out-of-pocket expenses at the time of closing not to exceed $3,000.
Jonesboro Homeownership Assistance Owning a home is part of the American Dream. The Grants and Community Development team can assist those trying to achieve homeowner status with the application of CDBG funding. One of our primary goals is to help expand home ownership opportunities to our low and moderate income citizens.
Little Rock HOME Program The HOME Program must be used to promote low-income, affordable housing activities (defined as 80% or less of area median family income, adjusted for family size)
Pine Bluff Homebuyer Assistance Program The Home Buyer’s Assistance Program is designed to assist low-to-moderate income families and individuals wanting to purchase a home on the open market, a HUD repossessed home or one that is for sale by owner (FSBO)
The US Department of Housing and Urban Development (HUD) offers the following programs:
The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.
To learn more about the Good Neighbor Next Door Program, click here.
The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.
Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.
To learn more about Section 184, click here.
Arkansas Housing Agencies:
Arkansas housing agencies are your best resource for down payment assistance programs. Through funding from the US Department of Housing and Urban Development, the purpose of these agencies is to ensure that affordable housing is available for everyone.