One of the most difficult hurdles in purchasing a home is saving for the down payment. However, there’s no need to worry! Along with loan programs that allow for a low down payment, many states have down payment assistance programs that will make that hurdle much easier to get over.

What is a down payment assistance program?

Down payment assistance programs are created by state housing financing agencies in order to make homebuying more affordable for everyone. They will help cover your down payment and, in some cases, closing costs or other costs associated with buying a home. They are always coupled with a normal home loan.

Who’s eligible for down payment assistance?

To be eligible for these programs, it typically depends on income and purchase price limits, what loan program you’re using, credit score requirements, and what county the home being purchased is in. Some organizations will require borrowers to take a homebuying class in addition to the other qualifications.

ADFA (AR)

The Arkansas Development Finance Authority (ADFA) has a multitude of programs to help Arkansas residents buy their new home.

ADFA Move-Up

Can be used with FHA, VA, USDA, and Conventional
30 year fixed rate
Can be combined with other ADFA incentives

ADFA Mortgage Credit Certificate

Dollar-for-dollar tax credit for low-to-moderate income first-time homebuyers
Allows qualifying, tax-paying borrowers to claim a tax credit of up to 50% of their annual mortgage rate up to $2000 for the life of the loan

ADFA Down Payment Assistance

Can be paired with ADFA Move-Up
Ranges from $1000-$15,000 for closing cost assistance
Second mortgage with a 10 year term
Cannot be used with USDA loans

ADFA StartSmart Mortgage Loan Program

Available to first time homebuyers
Can be used with FHA and Conventional
30-year fixed rate with no prepayment penalty
Purchase price of a home cannot exceed $425,000

IHDA (IL)

The Illinois Housing Development Authority (IHDA) has two down payment programs, IHDAccess and 1^st Home Illinois.

Benefits

IHDAccess:

- Available to all homebuyers

- Percentage of purchase price (percentage depending on program) up to a certain amount

- 30-year fixed-rate mortgage with affordable interest rate

- Can choose from forgivable, deferred or repayable assistance

- Can be used with all loan program types

1^st Home Illinois:

- Exclusive to residents of Cook, Marion St. Clair and Winnebago counties

- Available to first-time homebuyers and veterans

- $7,500 grant for down payment and closing costs

- 30-year fixed-rate with affordable interest rate

- Can be used with different types of loan programs

KHAP (KS)

The Kansas Housing Assistance Program (KHAP) has a program for all types of homebuyers.

Benefits

- 30-year fixed rate mortgage

- Up to 5% grant for down payment or closing costs (percentage amount depending on loan type)

- Can be used with FHA and conventional

MHDC (MO)

The Missouri Housing Development Commission (MHDC) has two programs: First Place and Next Step.

Benefits

First Place:

- Available to first-time homebuyers and veterans

- Assistance is 4% of the first mortgage amount

- Forgiven after you’ve been in the home for 10 years

- 30-year fixed rate

Next Step:

- Available to first-time homebuyers and veterans

- Assistance is 4% of the first mortgage amount

- Forgiven after you’ve been in the home for 10 years

- 30-year fixed rate

- Lower interest rates for homebuyers in opportunity areas (check here)

OHFA (OK)

The OHFA (Oklahoma Housing Finance Agency) has a program for all types of homebuyers.

Benefits

- 3.5% of loan amount for down payment and closing costs

- 30-year fixed rate

- Can be used with FHA and conventional loans

- Special rates for teachers, first responders and Oklahoma State employees

Local Grants

There are also local grants based out of certain locations that you can potentially qualify for depending on your financial and familial circumstances. Your Flat Branch loan officer can help you determine which programs you qualify for!

Loan Programs

Purchase & Refinance