SINGLE FAMILY HOMEOWNERSHIP PROGRAMS

“HomeToOwn” Program

• Type of Loan – First Mortgage ( FHA, VA, RD)

• Interest Rate -  3.50 % (subject to change without notice) –
• Loan Term – 30 years only ( No Prepayment Penalty)
• To Qualify: 
   

  1. Purchase Price Maximum -  $ 250,000.

  2. Household Income Limits – Based on county where property is located and the number in household.

  3. Must be a first time homebuyer in Non-Targeted counties.

  4. Minimum credit score of 640 for all borrowers.

  5. Maximum 45% Debt-To-Income (DTI) ratio.

•  Buyer must occupy property as primary residence.

•  Can’t be used with the Mortgage Credit Certificate (MCC) Program.

Down Payment Assistance (DPA)

• Type of Loan  - Second Mortgage

• Purpose of Loan – cover downpayment, closing costs and prepaids.

• Loan Amount Maximum -  $ 1,000 to $ 6,000.

•  Interest Rate  -  4.00% (subject to change without notice) –

•  Loan Term – 10 years

• Homebuyer counseling class (8 hours) is required prior to closing.

• Cash back to borrowers at closing to cover loan expenses paid up front.

Arkansas Dream Downpayment Initiative (ADDI)

• Purpose of Loan – Downpayment and closing costs.
• Amount up to 6% of the purchase price not to exceed $10,000.
• To Qualify:

1. Must be a First Time Homebuyer.

2. Household Income Limits based on the county where the property is located and the number living in the home.

• Homebuyer counseling class (8 hours) is required prior to closing.
• “Soft” second mortgage – no monthly payment on second mortgage.
• ADDI loan is “forgivable” over a five year period.
• No cash back to borrowers at closing when using ADDI funds.

NOTE: Both the DPA and ADDI  downpayment assistance second mortgage loans  must be used in conjunction with the ADFA “HomeToOwn” first mortgage loan.