TL;DR: Arkansas's ADFA Down Payment Assistance program is a flat-dollar repayable second mortgage of $1,000 up to $15,000 (as of March 10, 2026), not a percentage of your loan amount, paired with an ADFA StartSmart or Move-Up first mortgage. On a home at the $500,000 StartSmart price cap (June 3, 2025), that $15,000 maximum works out to 3% of the purchase price. Benton and Washington County buyers qualify under the same income limits, $101,800 for one to two people and $117,070 for three or more, as of June 3, 2025.
Arkansas Down Payment Assistance Program: How Much Can You Get?
ADFA's Down Payment Assistance program is not a percentage-based grant. It is a flat-dollar, repayable second mortgage ranging from $1,000 up to a maximum of $15,000 (ADFA Homeownership Program Guidelines, as of March 10, 2026), usable for your down payment, closing costs, principal reduction, or cash back for items you already paid outside of closing, plus up to $100 in safety overage. The loan carries a 10-year amortization term and must be paired with an ADFA StartSmart or Move-Up first mortgage. Because the maximum is a fixed dollar figure rather than a percentage of your loan, the relative value depends on your purchase price. At the $500,000 StartSmart price limit (as of June 3, 2025), the $15,000 maximum works out to $15,000 divided by $500,000, which equals 3% of the purchase price. On a lower-priced home, that same $15,000 covers a larger share of your cash-to-close. If you are relocating to Northwest Arkansas and shopping under $500,000, the DPA cap alone can cover most or all of your closing costs, even before you touch a down payment.
How Does the Interest Rate on the Second Mortgage Work?
ADFA does not quote a separate rate for the DPA loan. Instead, the second mortgage matches the ADFA First Mortgage Rate on whichever program you are paired with. As of the August 13, 2026 rate posting, StartSmart Government loans (VA, USDA/RD, FHA) carried a 30-year fixed rate of 5.50%, and StartSmart Freddie Mac HFA Advantage loans for households below 80% of area median income carried 5.75%. Move-Up borrowers saw higher rates: 6.375% on Government loans, 6.50% on Conventional HFA loans below 80% AMI, and 6.625% on Conventional HFA loans above 80% AMI. Whichever rate you land on also prices your $1,000 to $15,000 DPA loan over its 10-year amortization. That means the DPA is not free money; it is a real second lien with a real monthly payment, and ADFA's own underwriting counts that payment against your debt-to-income ratio. If you are budgeting a relocation, treat the DPA payment as a fixed monthly obligation from day one.
Do You Qualify in Benton or Washington County?
Benton and Washington County buyers qualify under the same StartSmart income limits, since neither county is treated as a targeted area with a different threshold. As of June 3, 2025, the limit is $101,800 for a one- or two-person household and $117,070 for a household of three or more, in both counties. The StartSmart purchase price limit is $500,000 statewide, so a home in Bentonville, Rogers, Fayetteville, or Springdale all falls under the same ceiling. If your household income runs above the StartSmart limits, ADFA's Move-Up program pairs with DPA under a flat statewide income cap of $142,000 (ADFA Move-Up Program Guidelines, as of March 10, 2026), with no separate county breakdown, though the purchase price then follows standard conforming FHA, VA, RD, or Freddie Mac loan limits with no jumbo loans allowed. Every DPA borrower, under either program, needs a minimum median credit score of 640 using traditional credit only, and a maximum debt-to-income ratio of 45.000%, including the DPA payment itself (ADFA Homeownership Program Guidelines, as of March 10, 2026). If you are a dual-income household relocating for a job at Walmart, Tyson, or J.B. Hunt and your combined income sits between $117,070 and $142,000, Move-Up is likely your path, not StartSmart.
How Does ADFA's Assistance Compare to a Typical Down Payment?
Nationally, the median down payment among all home buyers was 19% in 2025, according to the National Association of Realtors. First-time buyers put down a median of 10%, the highest share since 1989, while repeat buyers put down 23%, the highest share since 2003. ADFA's program does not eliminate the down payment requirement on your first mortgage, but its $15,000 maximum second mortgage can cover the difference between what you have saved and what your first-mortgage program requires, plus your closing costs. At the $500,000 StartSmart cap, that $15,000 equals 3% of the purchase price, meaning a buyer who already has 3% saved could put ADFA's assistance almost entirely toward closing costs and prepaids instead. If you are relocating from a market where a 10% to 19% down payment is standard practice, that gap is exactly what ADFA's DPA is built to close.
What Should You Do With These Numbers?
- Confirm which county-level income limit applies to your household size: $101,800 for one to two people or $117,070 for three or more, in both Benton and Washington County.
- If your household income is above $117,070 but at or below $142,000, ask your lender about pairing DPA with Move-Up instead of StartSmart.
- Pull your credit report before you apply; ADFA requires a minimum median score of 640 on traditional credit only, with no non-traditional credit accepted.
- Estimate your debt-to-income ratio including a DPA payment on the 10-year amortization term, since ADFA caps total DTI at 45.000% including that payment.
- Compare the $15,000 DPA maximum against your target purchase price to see what percentage of the price it actually covers for you.
Frequently Asked Questions
How much down payment assistance can you get in Arkansas?
ADFA's Down Payment Assistance program provides a flat-dollar repayable second mortgage of $1,000 up to $15,000, not a percentage of your first mortgage. The loan runs on a 10-year amortization term and must be paired with an ADFA StartSmart or Move-Up first mortgage. At the $500,000 StartSmart price limit, the $15,000 maximum equals 3% of the purchase price.
What interest rate applies to the ADFA down payment assistance loan?
The DPA second mortgage matches the rate on whichever ADFA first mortgage you are paired with, rather than carrying its own separate rate. As of the August 13, 2026 rate posting, that meant 5.50% on StartSmart Government loans and 5.75% on StartSmart Freddie Mac HFA Advantage loans for households below 80% of area median income.
What income limits apply to Benton and Washington County buyers?
Benton and Washington County share the same StartSmart income limits: $101,800 for a one- or two-person household and $117,070 for three or more, as of June 3, 2025. Buyers above those limits can look to ADFA's Move-Up program instead, which uses a flat statewide income cap of $142,000 regardless of household size or county.
What credit score do you need for ADFA down payment assistance?
ADFA requires a minimum median credit score of 640 (as of March 10, 2026) using traditional credit only; non-traditional credit is not accepted. Borrowers also need a maximum debt-to-income ratio of 45.000%, and that calculation must include the DPA loan payment itself, not just the first mortgage payment.
Is Arkansas's down payment assistance a grant you do not repay?
No, ADFA's Down Payment Assistance is a repayable second mortgage, not a grant. It carries a 10-year amortization term and an interest rate that matches your ADFA first mortgage, so it functions as a real second lien with its own monthly payment.
If you are weighing whether StartSmart or Move-Up fits your household income and target price in Bentonville, Rogers, Fayetteville, or Springdale, Mason Capital Group can walk through your ADFA-eligible loan amount and estimated combined monthly payment on your first call. Reach us at 479-925-3333.
About the author: Cameron Torabi, Principal Broker — Mason Capital Group. 30+ years of Northwest Arkansas real estate expertise; $2.4B+ in cumulative transaction activity.
Figures in this article are drawn from the Arkansas Development Finance Authority (ADFA) Homeownership Program Guidelines, Single-Family (as of March 10, 2026), the ADFA Homeownership current rates page (as of August 13, 2026), the ADFA StartSmart Income Limits table within the Homeownership Program Guidelines (as of June 3, 2025), and the National Association of Realtors 2025 Profile of Home Buyers and Sellers (as of November 4, 2025).