With a total land area of 53,180 square miles, the state of Arkansas ranks 29th largest State in the United States.
Its geography is very diverse. From densely forested timberlands to mountainous highlands, to the lowlands near the Arkansas Delta and the Mississippi River. The Natural State is home to over 3 million people and is the 33rd most populous state.
Many individuals found themselves settling in Arkansas. It offers plenty of interesting things and places to keep the curious always occupied. In won’t be called the ‘Natural State” for no reason. In addition to that, the place is dotted with many nostalgic architectural structures, art galleries, and educational centers.
Arkansas homebuyers are in for Something Good
According to Zillow, the median home price listed in Arkansas is around $160,000. This makes it lower than the current national median home price with is $254,900.
Moreover, home values in this state have generally increased in over a year to a 7.6 percent. This upward trend is predicted to continue within the next year, rising 3.9 percent.
Affordable homes for rent also abound in Arkansas. Median rent price is $1,025. However, there are still many apartments offering rentals much lower than that. But if home prices for purchasing an Arkansas home are at their lows, it would be a high time to move from renting an apartment to owning a house yourself.
Assistance Programs to Aid in Homeownership
One of the many obstacles in homeownership is the need to put a large sum of money up front. Many Arkansans hesitate to pursue their homeownership dreams due to the lack of finances to cover initial expenses, such as down payment and closing costs.
This problem is all the more difficult for people coming from the low- to moderate- income categories. To help eligible homebuyers leap past this hurdle, the Arkansas Development Finance Authority or ADFA has designed a number of assistance programs.
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ADFA Down Payment Assistance Program
There is the ADFA Down Payment Assistance Program. The ADFA offers $1,000 to $6,000 of closing costs assistance to applicants of first mortgage. Borrowers may take advantage of a cash back option for certain expenses paid outside of closing.
The program has a low-interest rate of 4 percent and has a 10-year amortization. To qualify for this assistance, the ADFA requires the first-time homebuyer to complete a pre-purchase education class with a counselor from a network of counseling agencies.
Arkansas Dream Downpayment Initiative Program
Another down payment assistance from the ADFA is the Arkansas Dream Downpayment Initiative Program or the ADDI. This program is provided through the United States Department of Housing and Urban Development’s HOME funding.
Eligible Arkansan homebuyers may get an assistance of up to 6 percent of the home’s purchase price, not be more than $10,000.
This down payment assistance comes in the form of a second mortgage loan which does not require monthly payments. Moreover, the loan is forgivable over five years.
Like the ADFA DPA, borrowers are required to attend a pre-purchase education class from approved counseling agencies. Also, the ADDI borrowers must take a loan only from participating lenders.
Because this loan aims to aid those who are financially-challenged, the borrower’s household income must not exceed the maximum limit set per county. For easier reference, you may check on the income limit per county for 2017.
Finding the right down payment and closing costs assistance can be hard, but with DPAsearch.com, your search will be made a whole lot easier.