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What is the Arkansas Dream Downpayment Initiative (ADDI)?

Downpayment Assistance is one of the biggest obstacles to homeownership. Nationwide, thirty percent of low-income buyers cannot afford to buy a modestly priced home solely because they lack sufficient funds for the downpayment and closing costs. The Arkansas Dream Downpayment Initiative, funded by the HOME Investment Partnerships Program, provides funding to assist with the upfront costs of buying a home and give hundreds of families throughout the state the ability to purchase their first home.

What are the goals of the ADDI Program?

• Increase the overall homeownership rate in Arkansas.
• Create greater opportunity for homeownership among lower income and minority households.
• Revitalize and stabilize communities throughout the state.

What are the eligible uses of ADDI funds?

ADDI funds may be used for downpayment and closing cost assistance towards the purchase of single-family housing by low-income families (80% of area median income or less) who are first-time homebuyers.

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How do I start the process of obtaining ADDI assistance?

Contact any of ADFA’s participating lenders to apply.  Click here for a list of participating lenders.  

What is the definition of a first-time homebuyer?

A first-time homebuyer is defined by federal regulation as someone who has not had an ownership interest in a residence at any time during the past three years.

What type of property is eligible?

Under ADDI, eligible property types include single family housing (1-4 family residence), condominium unit, or combination of manufactured housing and lot. The unit must meet all applicable State and local housing quality standards.  The purchase price cannot exceed the HUD 203(b) Mortgage Limits.

If you qualify......

ADFA will provide ADDI funds in the form of a forgivable loan (soft second mortgage) in an amount up to six percent (6%) of the purchase price for downpayment and closing costs, not exceeding $10,000 The assistance will be forgiven in equal annual installments over the period of affordability (five years), as long as the homebuyer continues to own, occupy, maintain, insure, and pay all taxes on the home.

Additional ADDI Requirements

• Purchase of the residence is contingent upon the owner satisfying all HOME Program requirements.

• Households cannot make over the maximum county income limit adjusted for the number of person’s in the household. Click here for a list of 2014 county income limits for the ADDI Program - Excel

• The borrower must complete an 8- hour homebuyer counseling class from an approved ADFA counselor.  CLICK HERE FOR A LIST OF HOME BUYER COUNSELORS

• HOME requirements regarding lead based paint must be addressed if the home was built before 1978.

What happens to the ADDI assistance if I fail to own, occupy, maintain, insure and pay all taxes due on the home I purchase?

ADDI assistance may be recaptured and used to assist another low-income homebuyer


  1. MORTGAGE (3-18-09) -  Microsoft Word Document

  2.  Mortgage Subsidy Agreement - Microsoft Word Document

  3. Notice to Homebuyer - Microsoft Word Document

  4. PROMISSORY NOTE - Microsoft Word Document

  5. APPLICATION FOR HOME ASSISTANCE - Microsoft Word Document

  6. Closing instructions - Microsoft Word Document

  7. Homebuyer Assistance Document Checklist2 - Microsoft Word Document



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