The Three ADFA Programs and How They Fit
Program and regulatory figures verified October 6, 2026. Details change; confirm your scenario with us.
Three products, and the one that surprises people is how tightly the assistance is tied to whichever first mortgage sits above it.
What ADFA runs
| Product | What it is |
|---|---|
| StartSmart | First mortgage, tax-exempt bond funded, first-time buyers (with exceptions) |
| Move-Up | First mortgage, no first-time requirement, $142,000 statewide income cap |
| Down Payment Assistance | Second mortgage, $1,000–$15,000, matching the first, 10-year term |
The assistance is not standalone. It rides on one of the two firsts, and which first you use changes what the assistance costs you. Choosing between them.
★ Why the pairing matters more than usual
Because the second matches the first mortgage's rate. On most state programmes the assistance terms are fixed regardless of what sits above them; in Arkansas they are not.
So StartSmart's bond pricing — which ADFA characterises as roughly 1% below market — does double duty. It lowers your first mortgage payment and lowers the payment on the assistance second, because the second is written at the same rate.
That makes clearing StartSmart's gates worth more in Arkansas than the equivalent choice is in most states. How the second is structured.
What you can put underneath
- StartSmart: FHA, VA, Rural Development, and Freddie Mac Conventional (HFA Advantage).
- Move-Up: FHA, VA, Conventional, and Rural Development.
Rural Development matters more in Arkansas than most buyers expect. Much of the state sits outside the metro areas, and an RD first with ADFA assistance on top is a strong structure where it is available.
No prepayment penalty on either
ADFA states this explicitly for both firsts. Worth knowing because it means refinancing later is not penalised — though the assistance second would need settling at that point, since it is a lien on the property.
★ What we do not claim
ADFA's published StartSmart eligibility makes no mention of a homebuyer education requirement. Many states require one and plenty of pages assume Arkansas does too.
We are not going to tell you it is required when the agency does not say so, and we are not going to tell you it is not required either — absence from a web page is not a rule. If a course comes up on your file we will say so at the time. What we will not do is publish a requirement we cannot source.
Frequently asked questions
What down payment assistance programs exist in Arkansas?
The Arkansas Development Finance Authority runs two first mortgages, StartSmart for first-time buyers and Move-Up with no first-time requirement, plus a down payment assistance second mortgage of $1,000 to $15,000 that pairs with either.Does the ADFA first mortgage affect the assistance terms?
Yes, more than in most states. The assistance second is written to match the first mortgage's interest rate, so pairing it with StartSmart's bond pricing, which ADFA describes as roughly 1% below market, lowers the payment on the assistance as well as on the first mortgage.Is homebuyer education required for ADFA in Arkansas?
ADFA's published StartSmart eligibility does not mention a homebuyer education requirement. We do not claim one is required, and absence from a published page is not proof that none applies, so we would confirm it on your specific file rather than assert 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.