Overview
Arkansas ranks among the most affordable states for homeownership, with a median home price near $185,000, well below the national average. The Arkansas Development Finance Authority provides the primary state-level assistance for buyers, offering both down payment help and competitive mortgage rates.
ADFA's down payment assistance program offers up to $15,000 as a forgivable second mortgage at 0% interest. The forgiveness period ranges from 5 to 10 years depending on the assistance amount, making it an exceptional benefit for buyers who plan to stay in their home. First-time buyer status is required, though buyers in targeted areas may receive additional benefits.
State Programs
ADFA Down Payment Assistance (DPA)
Down payment assistanceADFA Move-Up Program
Below-market rate mortgageFederal Programs Available in Arkansas
These nationwide programs can be combined with Arkansas state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Arkansas
The ADFA Move-Up program extends below-market rate mortgages to repeat buyers as well, recognizing that affordability challenges affect purchasers at all stages. This 30-year fixed-rate mortgage program is processed through participating lenders across the state.
Arkansas has relatively low property taxes, averaging about 0.62%, and a cost of living index well below the national average. Combined with a graduated income tax that tops out at 3.90% as of 2026, the state offers a favorable financial environment for homeowners. Cities like Little Rock, Fayetteville, and Bentonville provide growing job markets and increasing home values while remaining affordable compared to peer cities nationwide.
Federal programs are particularly valuable in Arkansas, where much of the state qualifies for USDA rural development loans. This means many buyers outside the Little Rock and Fayetteville metro areas can access zero-down-payment financing.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: March 30, 2026.