Two Numbers: What It Covers, What It Costs
Program and regulatory figures verified October 6, 2026. Details change; confirm your scenario with us.
Arkansas is the state where the second number genuinely changes the decision, so both belong on the table before you choose an amount.
What it covers
Down payment and closing costs, between $1,000 and $15,000. On an FHA purchase at $250,000 the minimum down payment is 3.5% of the price, with closing costs on top, and the assistance can address both sides of that rather than making you pick one.
★ What it costs, and why it matters here
The second is written at the same rate as your first mortgage and amortises over 10 years. So the monthly cost scales directly with the amount:
| Assistance taken | What it does |
|---|---|
| $5,000 | Smaller gap covered, smallest second payment |
| $10,000 | Roughly double the second payment of $5,000 |
| $15,000 | Maximum help at closing, largest monthly cost |
We do not print payment figures — the actual numbers depend on the rate, and we do not publish rates. What we will do is show you the two payments side by side on your own file before you choose.
★ The Arkansas-specific trap
In a silent-second state, taking the maximum assistance is close to free — there is no payment, so it costs nothing monthly and does not touch your ratios.
Arkansas is the opposite. The second payment counts in your debt-to-income ratio, so every extra dollar of assistance:
- adds monthly cost for ten years, and
- reduces the first mortgage you can qualify for.
Taking $15,000 when $8,000 closes the gap buys nothing and costs you twice. The right amount here is the amount the purchase actually requires. How the ratio works.
The reimbursement people forget
ADFA allows cash back for expenses paid outside of closing — appraisal, inspection, earnest money — where you can document them. Most programmes forbid any cash reaching the borrower, so this is genuinely unusual.
Keep every receipt from the moment you start. Buyers routinely discard exactly the documentation that would have qualified. Detail.
And when you sell
Because you have been paying it down from month one, the balance at sale is lower than the amount you borrowed. After ten years of payments it is gone entirely. That is the upside of the amortising structure — a silent second returns the full amount whenever you leave.
Frequently asked questions
How much does ADFA down payment assistance cost per month?
It depends on the amount taken and your first mortgage rate, because the second is written at the same rate over a ten-year term. We do not publish rates or payment figures; the two payments are shown together on your own file before you choose an amount.Is it better to take the maximum ADFA assistance?
Usually not in Arkansas. The second mortgage payment counts in your debt-to-income ratio, so taking more than needed both adds ten years of monthly cost and reduces the first mortgage you can qualify for. The right amount is what the purchase actually requires.Can I be reimbursed for the appraisal and inspection?
ADFA allows cash back to the borrower for documented expenses paid outside of closing, which can include appraisal, inspection and earnest money. Keeping the receipts from the start is what makes it possible.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not tax or legal guidance. ADFA program terms, income limits and purchase price limits are set by the Arkansas Development Finance Authority and change; figures here carry the date we verified them against ADFA's published documents. ADFA down payment assistance is a second mortgage matching the first mortgage over a 10-year term, which means it carries a monthly payment; it is not a grant. Loans are subject to borrower and property qualification.