First-Time Home Buyer Programs in Arkansas 2026

· ✓ Last verified Oct 1, 2026 · March 3, 2026 · by AskDoss Editorial Team ·Home Buying · 5 min read

The Arkansas Development Finance Authority (ADFA) runs the state’s first-time buyer loan, StartSmart. It is a bond-financed 30-year fixed mortgage with a $500,000 price cap and county income limits. ADFA’s other first mortgage, Move-Up, has no first-time rule. Either can carry ADFA’s Down Payment Assistance second mortgage: $1,000 to $15,000, on a 10-year term.

ADFA’s home loans page lists exactly three programs: the Down Payment Assistance Loan Program, the Move-Up Loan Program and the StartSmart First-Time Home Buyer Program. The assistance side is covered in detail on the Arkansas down payment assistance page. This page is about picking the first mortgage and clearing ADFA’s eligibility rules.

StartSmart and Move-Up compared

StartSmart Move-Up
First-time buyer rule Yes, with county and veteran exceptions “There is no first time homebuyer requirement”
Loan types FHA, VA, RD; Freddie Mac conventional (HFA Advantage) FHA, VA, Conventional and RD
Term 30-year fixed, no prepayment penalty 30-year fixed, no prepayment penalty
Rate Below market; funded by IRS tax-exempt mortgage revenue bonds “Rates subject to change without notice”
Income County and household-size limits Qualifying income up to $142,000
Price cap $500,000 Arkansas conventional conforming loan limit
Credit score At least 640 At least 640

ADFA pairs both loans with its Down Payment Assistance second. Move-Up’s eligibility list also requires that the home be your primary residence.

Who counts as a first-time buyer for StartSmart

ADFA’s test is that you “must not have owned his/her principal residence for three (3) years prior to closing the loan.” The clock runs to the closing date, not the application date. The rule is waived in two situations.

  • Thirty targeted counties. A buyer in any of these counties does not have to be a first-time buyer: 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 and Woodruff. Pulaski, Benton, Washington and Sebastian are not on the list.
  • Veterans and their spouses. They are exempt “with proper documentation.”

If you have owned a home recently and you are buying outside those 30 counties, Move-Up is the ADFA loan that still works for you.

StartSmart income limits

StartSmart income limits depend on household size and on the county where the property is. ADFA’s current sheet is titled “StartSmart Income Limits, 2026 Income Limits” and is dated “Effective 06/01/2026”. It lists every county with one figure for a household of 1-2 and another for 3 or more, and marks each county N (non-targeted) or T (targeted). Its legend gives the non-targeted purchase price limit as $500,000, the same figure the StartSmart page states. The StartSmart page links this sheet from its “maximum limits” line. Its “StartSmart Program Income Limits” button still opens the older 2025 sheet (effective 06/03/2025), so check that you and your lender are working from the 2026 figures.

Move-Up has one income cap: a borrower’s qualifying income “cannot exceed $142,000,” wherever the home is and however many people live in it.

Homes StartSmart will finance

StartSmart covers single-family detached homes, 1-unit primary residences, PUDs, townhomes and condominiums, and modular homes. Manufactured homes follow the FHA, VA or RD guidelines. A duplex qualifies only if you buy both sides with FHA financing, live in one side, and the building is at least 5 years old. In a targeted county the duplex can be newer.

The ADFA second mortgage in one paragraph

The Down Payment Assistance program is open only to buyers who take a StartSmart or Move-Up first mortgage. It runs “from $1,000 to $15,000 for down payment and closing cost assistance.” ADFA describes it as “a second mortgage, matching the first mortgage, with a 10-year term.” It is a loan, not a grant, and ADFA’s page says nothing about forgiveness. Cash back is allowed only for expenses you “paid outside of closing” (POC).

Little Rock’s city DPA for first-time buyers

This is a City of Little Rock program, run by its Department of Housing and Neighborhood Programs, and it covers only homes inside the city limits. Its 2026 flyer offers “Up To $10,000 In DPA”. The cap is six percent of the purchase price or $10,000, whichever is less. It is a forgivable loan, forgiven “in equal monthly installments over a 60-month period”, and you must own and live in the home for at least five years. The conditions:

  • You are a first-time buyer, meaning you have owned no residential property in the last three years.
  • Household income is at or below 80% of AMI. The 2026 flyer, effective June 1, 2026, lists $52,500 for one person and $74,950 for a household of four.
  • You complete a homebuyer counseling course the city accepts.
  • Your first mortgage comes from a bank or mortgage company with a physical location in Arkansas, and the lender requests the assistance for you.
  • City staff inspect the home against Little Rock’s Minimum Housing Code, and all repairs are finished before approval. There is no cash back at closing, and the money cannot be used to buy down the mortgage rate.

The city’s documents do not say whether it can be combined with ADFA’s second mortgage. Ask the Community Development Division before you plan on both.

Getting to closing with an ADFA lender

ADFA says it “offers home buyer programs through participating lenders statewide”. Its Find A Mortgage Lender page lets you search for individual loan officers within 10 to 100 miles. If there is no one near you, ADFA asks you to call (501) 682-5900. ADFA also runs a sign-up for daily rate emails. Estimate the payment on both loans with the mortgage calculator, and see pre-approval for what the lender checks first.

Arkansas first-time buyer questions

I owned a house two years ago. Which ADFA loan can I get?

Move-Up, which has no first-time requirement. StartSmart is also possible if you buy in one of the 30 targeted counties or you are a veteran or a veteran’s spouse.

Is Little Rock in a StartSmart targeted county?

No. Little Rock is in Pulaski County, which is not one of ADFA’s 30 targeted counties, so the three-year rule applies to StartSmart there unless you use the veteran exemption.

What is the most I can pay with StartSmart?

$500,000. The StartSmart page states that “Purchase price of a home cannot exceed $500,000” and makes no separate figure for targeted counties.

Is ADFA’s $15,000 forgiven?

ADFA does not present it as forgivable: its page calls it a second mortgage with a 10-year term and mentions no forgiveness. Little Rock’s city DPA is the forgivable one, if you buy in Little Rock.

What credit score do I need?

At least 640 for StartSmart and for Move-Up.

More on buying in Arkansas

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