Arkansas ADFA Move-Up Loan Program Guide

Guide to the Arkansas ADFA Move-Up Loan Program

The Arkansas ADFA Move-Up Loan Program is designed to help homeowners who are looking to move into a new home. This program offers affordable financing solutions and down payment assistance to eligible buyers who are purchasing a home in Arkansas. Below is an updated guide for 2025, which explains the eligibility, application process, and benefits of the program.

1. Program Overview:

• Purpose: The Arkansas ADFA Move-Up Loan Program provides assistance to homebuyers who are purchasing a new home after having owned a previous property. The program aims to reduce financial barriers for buyers looking to “move up” into a larger or more suitable home.
• Assistance Amount: Eligible buyers can receive assistance for down payments and closing costs, with amounts typically ranging up to $10,000, depending on the financial need and the cost of the home.
• Loan Terms: The program offers competitive interest rates on a 30-year, fixed-rate mortgage, which helps reduce monthly payments for homebuyers.

2. Eligibility Requirements for 2025:

To qualify for the Arkansas ADFA Move-Up Loan Program, applicants must meet the following criteria:

• Move-Up Buyer: This program is specifically designed for individuals who already own a home and are looking to purchase a new one. Buyers must have owned and occupied their current home for a certain period, typically at least one year.
• Income Limits: Your household income must fall within the limits established by the program, which are based on the area median income (AMI) for your county or parish. These limits are updated annually.
• Credit Score: A minimum credit score of 640 is typically required, though individual lenders may have additional guidelines.
• Property Requirements: The property being purchased must be located in Arkansas and must serve as your primary residence. Both new and existing homes are eligible for this program, provided they meet the program’s criteria.
• Homebuyer Education: Applicants must complete a homebuyer education course to qualify for the program. This course provides valuable information on budgeting, the mortgage process, and the responsibilities of homeownership.

3. How to Apply:

The application process for the Arkansas ADFA Move-Up Loan Program is straightforward. Follow these steps to apply:

• Assigned Loan Officer: Upon beginning your application, a loan officer will be assigned to assist you throughout the process, ensuring that you meet all eligibility requirements and submit the necessary documentation.
• Required Documentation: Be prepared to submit documents such as proof of income, tax returns, credit reports, and a certificate from the homebuyer education course.
• Submit Your Application: Once you have gathered all necessary documents, submit your application to your loan officer. They will process the application and provide you with the next steps for approval.

4. Homebuyer Education Course:

• Mandatory Requirement: To qualify for the program, all applicants must complete an approved homebuyer education course, which ensures that you understand the homebuying process and are financially prepared for homeownership.
• Course Options: The course is available online or in-person and will provide a certificate upon completion, which is required to submit with your application.

5. Down Payment and Closing Cost Assistance:

• Assistance Structure: The Arkansas ADFA Move-Up Loan Program offers down payment assistance in the form of a grant or forgivable loan, typically up to $10,000, to cover down payment and closing costs.
• Loan Terms: The assistance is provided as a second mortgage, which is often forgivable after a set period, typically five years, provided you remain in the home as your primary residence during that time.

6. Finalizing the Loan:

• Approval Process: Once your application is approved, your loan officer will assist you in finalizing the loan process and guide you through the signing of documents and preparing for the closing.
• Closing Costs: You may be responsible for closing costs that are not covered by the assistance. Your loan officer will clearly explain any remaining costs and what you will need to pay.

Our expert loan officers will guide you throughout the entire process, ensuring a smooth experience from application to closing. They will help you understand the Arkansas ADFA Move-Up Loan Program and how to maximize the benefits of this assistance, ensuring that you can make the move to your next home with ease.