Press Release

For More Information, Call: Derrick Rose, 501-682-5904

LITTLE ROCK – The Arkansas Development Finance is offering mortgage loan funds at a record low 5.95 percent mortgage interest rate which is a 100 basis point (one percentage point) reduction from its previous rate offering.

The funds are made available through ADFA’s single family mortgage revenue bond program, known as the "HomeToOwn" Program. The program allows the Authority to offer funds year round and to adjust interest rates up or down to match market demands, which have experienced a recent downward trend.

The new low 5.95 percent interest rate matches the lowest rate the Authority has offered in its 23-year history. "I hope this low interest rate encourages families to think about their homeownership options," said Governor Mike Huckabee. "This is the kind of interest rate that will give an edge to the people we want to reach."

The funds are reserved through statewide participating lending institutions. Except within certain exempt counties in the state, to be eligible for the loans, an applicant must be a first-time homebuyer (must not have owned his/her principal residence for three (3) years prior to closing the bond loan). Also a borrower’s income and the sales price of the house cannot exceed specified limits. These limits vary depending on the number of family members and the county in which the property is located.

Under the "HomeToOwn" Program, ADFA also offers up to $3000 in down payment and closing cost assistance to first-time homebuyers and qualified applicants throughout the state of Arkansas. It is a second mortgage loan issued in conjunction with ADFA’s first mortgage loan. The first and second mortgages are payable in one payment to the master loan servicer. The down payment loan carries an interest rate of 9 percent with a term of ten (10) years.

"Cash for a down payment is the number one obstacle for most low-income Arkansas families," said ADFA President Rush Deacon. "This program is designed to move families past that barrier."

The Arkansas Development Finance Authority is the state's largest provider of below-market interest rate mortgages. Approximately 150 banks, credit unions, mortgage companies and savings and loan institutions participate in the program, which is funded by the sale of tax-exempt mortgage revenue bonds.

ADFA has been providing below-market interest rate mortgages since 1977. During that time approximately 40,000 loans have been made to low and moderate income homebuyers.

To help interested Arkansans obtain current interest rates for the "HomeToOwn" Program, ADFA has developed a toll free "HomeToOwn" answer line. The 24-hour general information line is 1-800-582-6637. Up-to-date information is also posted on ADFA’s web site at <www.state.ar.us/adfa>.

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