What Counts as a First-Time Buyer in Arkansas
Program and regulatory figures verified October 6, 2026. Details change; confirm your scenario with us.
Arkansas has more routes around this requirement than almost any state, and publishes all of them. They are just spread across three different pages of ADFA's site.
The rule itself
For StartSmart, a first-time homebuyer is someone who has not owned their principal residence in the 3 years prior to closing.
Note the wording: principal residence. Owning an investment property or a second home is a different question from having owned the home you lived in, and the test is about the latter.
★ Three ways past it
| Route | Who it covers | Keeps bond pricing? |
|---|---|---|
| Veteran exemption | Veterans and spouses, statewide | Yes |
| Targeted county | Anyone buying in one of 30 counties | Yes |
| Move-Up | Anyone | No — not bond funded |
The first two are the valuable ones, because they keep you on StartSmart, which ADFA describes as roughly 1% below market. Move-Up removes the rule but not the rate difference.
The veteran exemption · The 30 counties · Move-Up compared.
★ Check them in this order
- Have you or your spouse served? If yes, you are exempt statewide and you keep bond pricing. Nothing else needs checking.
- Is the county targeted? Same result, no documentation required beyond the address.
- Does the three-year test actually fail? Check the dates rather than assuming — people misremember when they sold.
- Otherwise Move-Up, where the question does not arise.
Most buyers who believe they are shut out have never been walked through steps 1 and 2.
Cases that come up
- Owned a rental, always rented where you lived. The test is about your principal residence, so this is worth checking rather than assuming.
- Sold a home a few years ago. Check the actual closing date against the three-year window before concluding.
- Divorced, and the house was in both names. Worth raising specifically — the facts matter and they are not always what people expect.
- Served, and have owned before. The exemption is yours. Bring the documentation to the first conversation.
What does not change
The assistance is $1,000 to $15,000 on either programme, as a second matching the first over 10 years. Credit minimum 640 on both. The route you take changes your rate and your limits, not the shape of the help. How the second works.
Frequently asked questions
What counts as a first-time home buyer in Arkansas?
For ADFA StartSmart, someone who has not owned their principal residence in the three years prior to closing. The test is specifically about the home you lived in, so owning an investment property is a separate question worth checking rather than assuming.How can I get ADFA StartSmart if I have owned a home before?
Two routes keep you on StartSmart: the veteran exemption, which covers veterans and spouses of veterans anywhere in Arkansas, and buying in one of the thirty federally targeted counties. A third route, Move-Up, has no first-time requirement but is not bond funded so it does not carry StartSmart's rate advantage.Does owning a rental property make me ineligible in Arkansas?
Not necessarily. ADFA's test is about not having owned your principal residence in the prior three years, so owning a property you did not live in is a different question. It is worth confirming on your specific facts rather than assuming either way.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.