Down Payment Assistance


The Arkansas Dream Downpayment Initiative (ADDI) is downpayment assistance provided through HOME funding by HUD. With ADDI, qualifying Arkansans can be provided up to 6% of the purchase price of their home, not to exceed $10,000.  It is a second mortgage loan with no monthly payment and is forgivable over five years.

ADDI can be used with any of the following ADFA loan products: ADFA Advantage, ADFA Move-Up or ADFA Move-Up Choice.  ADDI may also be used with a First Time Homebuyer Federal Tax Credit / Mortgage Credit Certificate (MCC).

How do I qualify for ADDI?

  1. Must be a First Time Homebuyer. (Have not been a homeowner in the past three years.)
  2. Household income limits not above maximum.
    *  2016 County Income Limits for the ADDI Program
  3. Pre-Purchase Homebuyer Education Class (8 hours) is required prior to closing.
    *  Homebuyer Counseling Agencies
  4. Must use an approved lender.
    *  Participating Lender List 

Single Family Staff available to assist you:

Barbara Whittaker – 501-682-5930
Dean Norman – 501-682-5935
Denise Wells – 501-682-5466
Joey Walsh – 501-682-5918
Virginia Wright – 501-682-5933
Murray Harding, Single Family Housing Manager – 501-682-5974



For many Arkansans, the largest obstacle to homeownership is saving for down payment and closing costs. In fact, this is a problem all too common among low to moderate income Arkansans who have little of their pay check left after paying for rent, utilities, transportation, insurance and groceries. To help, the Arkansas Development Finance Authority (ADFA) created the Down Payment Assistance (DPA) Program.

ADFA has DPA for qualifying applicants of a first mortgage (ADFA Advantage, ADFA Move-Up and ADFA Move-Up Choice).  The DPA ranges from $1,000 to $6,000 for closing cost assistance.  Cash back to the borrowers is allowed for expenses “paid outside of closing” (POC).

INTEREST RATE:      4% (subject to change without notice)
TERMS:                    10 YEAR AMORTIZATION

ADFA requires the borrowers to attend a Pre-Purchase Homebuyer Education Class where a certificate will be issued upon completion.

Click Here for a list of Homebuyer Counseling Agencies

Both the first and second mortgages will be sold to the master servicer, who currently is U.S. Bank.  The second mortgage is not subject to Recapture, and there is no prepayment penalty.

Our Single Family Staff is listed below, please do not hesitate to call with any questions may have.

Barbara Whittaker -501-682-5930
Dean Norman – 501-682-5935
Denise Wells – 501-682-5466
Joey Walsh – 501-682-5918
Virginia Wright – 501-682-5933
Murray Harding, Single Family Housing Manager – 501-682-5974

Downpayment Assistance Program Overview

  • 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
  • Pre-Purchase Homebuyer Education Class (8 hours) is required prior to closing.
  • Cash back to borrowers at closing to cover loan expenses paid up front.


Community Development



The Home Buyer’s Assistance Program is designed to assist low-to-moderate income families and individuals wanting to purchase a home on the open market, a HUD repossessed home or one that is “For Sale By Owner” (FSBO). The Home Buyer Assistance Program is a citywide activity that will be carried out particularly in areas where total household incomes fall below 80% of the median income for Pine Bluff, according to census tract data. Persons wishing to participate in the Home Buyer Assistance Program must qualify according to the regulations for the Department of Housing and Urban Development HOME Program and the City of Pine Bluff requirements. Persons wishing to participate in this program may receive assistance in the form of $2,000.00 for down payment and up to $3,000.00 of eligible closing costs, not including prepaid items for a home on the open market. The homeowner is responsible for all closing cost over $3,000.00. A minimum of $500 toward the down payment from the buyer is mandatory. The $500 is not considered part of the closing cost.


Eligible persons for this program must be low or low-to-moderate income with a gross annual income that does not exceed 80% HUD, of the median income for Pine Bluff. See the chart below to see if you qualify.


If you are separated or have a divorce pending, certain Arkansas Laws may affect your home purchase decision. Please notify or visit with our Loan Processor if this applies to your situation.


ELIGIBLE INCOMES: (Subject To Change Without Notice)

Household Family Size Maximum Allowable Household Income

1 Person Household 26,800

2 Person Household 30,600

3 Person Household 34,450

4 Person Household 38,250

5 Person Household 41,350

6 Person Household 44,400

7 Person Household 47,450

8 Person Household 50,500

This information is updated yearly by Department of HUD

NOTE: TOTAL ANNUAL INCOME MUST include income of all persons in the household and all monies received on a one-time

basis. Other types of income include SSI, AFDC, Child Support, Unemployment, Life Insurance Benefits, Retirement Benefits, etc.


The assistance you are requesting is a five (5) year or sixty- (60) month DEFERRED LOAN that will be secured by a second mortgage. This five-year period is also known as the eligibility period. The maximum assistance under the Home Buyer Assistance Program is $5,000 at 0% interest on the open market. The Deferred Loan received will not have to be repaid from the City of Pine Bluff unless you sell, transfer, bargain, refinance your loan, or otherwise dispose of the property, or breach any other form of the Mortgage Agreements, within a five (5) year period from the date you close the loan. In the case that one of the above occurs, you may be required to repay the unused principal portion or remaining balance owed on the deferred loan. Our Subordinate Mortgage will be released when the affordability period is over or paid off if required. As an applicant you will be required to sign a disclosure notice stating you understand the assistance you are receiving and the conditions that will apply.


As a buyer you must remain the occupant of the home as your main place of residence, this is known as “owner occupied”. Any single-family home or duplex serving as your main residence is considered eligible property. Property must be located within the city limits of Pine Bluff and must be able to be occupied immediately upon purchase without required additional repairs. There will be a minimum of two inspections done on the property that you choose. An appraiser hired by you through your lender, a person from our office at no cost, and/ or a home inspector if you hire one, will complete a written inspection report of the home. Often times these reports may overlap in repairs. If items identified to be replaced or repaired on the home you want to purchase, either the seller or buyer must complete them prior to buying the home.

Purchase Price $64,000 or Less

If the HUD income guidelines can be met according to your income and household size and you are approved for a loan, you may qualify for our assistance to purchase a home. This may include homes on the open market, one for sale by owner (FSBO), HUD and bank repossession. The maximum assistance is $5,000.

Purchase Price Between $64,001 and $70,000

You may be eligible to purchase a home up to $70,000 if your income and household size meets our HUD income guidelines. For a home to qualify for this price range it must be newly constructed or less than 13 months old. The home must be completed by the time the permanent loan is closed. In the case where newly constructed units are assisted the affordability period will be twenty (20) years regardless of the amount of assistance by the City.


Homes that are not eligible would be one that DO NOT conform to City Housing Codes; is located out of the city limits; sub-leased or owner-financed properties and any home that is not site built and

mobile homes. A home that needs repairs that cannot be complete before the buyer purchases the home.


The Community Development Homebuyer Assistance Program funding can be used in conjunction with secondary market financing only with Community Development’s approved low-to-moderate income Home Ownership Program.

Your Lender MUST notify the Economic and Community Development Office a minimum of four (4) days before setting a closing date to allow the final inspections and funds to be obtained. Secondary market loans, such as FHA, VA, and Conventional, may also be financing options.



1. Make an appointment with the Department of Economic and Community Development to complete Homebuyer Assistance application by calling 543-1820. You must bring a Picture ID of applicant(s), Social Security Card, Two (2) current pay stubs or Past Two Years W-2 forms, and rent receipt, if currently renting. The address is 716 S. Georgia Street, Monday – Friday between 8:00 A.M. – 5:00 P.M.

2. If housing counseling is needed, please see our Loan Processor for details.

3. Work with a local real estate agent in finding a home or get pre-qualified by a lender.

4. Apply for a loan at one of the approved Lending Institutions listed in Section VI.

5. Provide a copy of your loan documents to Economic and Community Development so we may schedule an inspection and process the completion of your loan application.

6. Once all eligibility requirements are met a representative from Economic and Community Development will bring our portion of closing cost and down payment to the closing (the day you sign the papers to buy your home).