Arkansas ADFA Move-Up Loan Program

The Arkansas Development Finance Authority (ADFA) Move-Up Loan Program is a state-supported initiative designed to provide affordable mortgage options and financial assistance for down payments and closing costs. This program makes it easier for eligible Arkansas residents to purchase homes and build financial security through homeownership.

Benefits

Offers 30-year fixed-rate mortgages with competitive interest rates for stability and predictability in monthly payments.
Provides down payment and closing cost assistance to reduce the upfront financial burden of buying a home.
Can be combined with the ADFA Down Payment Assistance program for enhanced financial support.
Available for both first-time and repeat homebuyers, ensuring broad access to homeownership opportunities.

Eligibility Requirements

Applicants must meet income limits, which vary based on household size and the location of the property being purchased.
The property must be located in Arkansas and intended as the buyer's primary residence.
Minimum credit score requirements must be met, typically starting at 640, though lender-specific criteria may apply.
Debt-to-income ratio limits must be adhered to, ensuring borrowers can manage their mortgage payments alongside other financial obligations.
Participation in a homebuyer education course is required to prepare applicants for the responsibilities of homeownership.

Additional Information

Administered by the Arkansas Development Finance Authority, the ADFA Move-Up Loan Program aims to promote stable and affordable homeownership across the state. By reducing financial barriers and offering favorable loan terms, this program supports Arkansas residents in achieving their dreams of owning a home while fostering community growth and economic stability.

Frequently Asked Questions About Our Program

What is the ADFA Move-Up Loan Program?

The ADFA Move-Up Loan Program is an initiative by the Arkansas Development Finance Authority (ADFA) offering affordable 30-year fixed-rate mortgages to eligible homebuyers. This program can be paired with various loan types, including FHA, VA, USDA, and conventional loans, to facilitate homeownership for low- to moderate-income individuals and families.

Who is eligible for the ADFA Move-Up Loan Program?

Eligibility requires an annual household income not exceeding $142,000, a minimum credit score of 640, and a maximum debt-to-income ratio of 45%. Applicants must intend to use the property as their primary residence and complete a homebuyer education course, especially if they are first-time homebuyers.

What types of properties are eligible under this program?

Eligible properties include single-family homes, condominiums, townhouses, units in Planned Unit Developments (PUDs), and certain manufactured homes, provided they meet specific guidelines. The property must be located within Arkansas and serve as the borrower's primary residence.

Can the Move-Up Loan Program be combined with down payment assistance?

Yes, the Move-Up Loan Program can be combined with ADFA's Down Payment Assistance (DPA) Program, which offers assistance ranging from $1,000 to $15,000. The DPA is structured as a second mortgage with a 10-year term, carrying the same interest rate as the first mortgage.

Is there a purchase price limit for homes under this program?

Yes, the maximum loan amount adheres to Arkansas’ conventional conforming loan limit, which is currently $424,100. This ensures that the program assists in purchasing modestly priced homes suitable for low- to moderate-income buyers.

Are there any fees associated with the Move-Up Loan Program?

Standard loan fees apply, including origination and closing costs. It's important to discuss all potential fees with your lender to understand the total cost of purchasing your home under this program.

Is homebuyer education required for this program?

Yes, all applicants, especially first-time homebuyers, are required to complete a pre-purchase homebuyer education course. This ensures that buyers are well-prepared for the responsibilities of homeownership and understand the mortgage process.

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Can I use the Move-Up Loan Program if I am not a first-time homebuyer?

Yes, the Move-Up Loan Program is available to both first-time and repeat homebuyers, provided they meet the program's eligibility criteria, including income, credit score, and primary residence requirements.

What is the interest rate for loans under the Move-Up Program?

The Move-Up Program offers competitive 30-year fixed interest rates. Specific rates may vary, so it's advisable to consult with an approved lender for current information.

Are there any post-purchase requirements?

Homeowners must occupy the property as their primary residence. Renting out the property or using it as a secondary residence may violate program terms and could result in penalties.

Is there a recapture tax associated with this program?

The program details do not specify a recapture tax. However, it's advisable to consult with a tax professional to understand any potential tax implications.

Can I refinance my mortgage under this program?

The Move-Up Loan Program is intended for the purchase of a new primary residence and does not apply to refinancing existing mortgages.

What is the process to apply for the Move-Up Loan Program?

To apply, contact an ADFA-approved lender who will guide you through the application process, including verifying eligibility, assisting with necessary documentation, and explaining program requirements.

Are there any restrictions on the location of the property?

Yes, the property must be located within the state of Arkansas to be eligible for the Move-Up Loan Program.

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Can I purchase a newly constructed home with this program?

Yes, newly constructed homes are eligible, provided they meet the program's property requirements and purchase price limits.

Is there a deadline to apply for the program?

There is no specific deadline to apply for the Move-Up Loan Program. However, program availability is subject to funding, so it's advisable to begin the application process as soon as you are ready to purchase a home.

Are there occupancy requirements?

Yes, buyers must occupy the home as their primary residence. The program is designed to assist individuals and families purchasing a home for personal use, not for investment or rental purposes.

Can this program be combined with other assistance programs?

Yes, the Move-Up Loan Program can be combined with other ADFA assistance programs, such as the Mortgage Credit Certificate (MCC) Program, to further enhance affordability for homebuyers.

Is there a minimum borrower contribution required?

While the program provides significant assistance, borrowers may be required to contribute a minimum amount toward the purchase. Specific requirements should be confirmed with your lender.

How long does the application process take?

The timeline can vary based on individual circumstances and lender processing times. It's advisable to begin the application process early to ensure timely approval and to address any potential issues that may arise.