Arkansas Dream Downpayment Initiative (ADDI)

Arkansas Dream Downpayment Initiative (ADDI) is a forgivable loan for homebuyers in Arkansas, administered by Arkansas Development Finance Authority (ADFA). The Arkansas Dream Downpayment Initiative (ADDI) is an ADFA program that helps qualifying low-income, first-time homebuyers with a forgivable soft second mortgage of up to 10% of the sale price, not to exceed $10,000. Funds cover some or all of the down payment, closing costs, and prepaid items. The loan is forgiven in equal annual installments over a 5-year affordability period as long as the homebuyer continues to own and occupy the home. Up to $10,000 forgivable assistance. 0% interest soft second. No monthly payment. Forgiven over 5 years. Covers down payment and closing costs. Funding comes from HOME Investment Partnerships Program (HUD) / American Dream Downpayment Initiative funds administered by ADFA.

Arkansas Dream Downpayment Initiative (ADDI) offers up to $10,000 in assistance. Amounts are the program's published maximums, not an offer — Arkansas Development Finance Authority (ADFA) determines any individual award.

Arkansas Dream Downpayment Initiative (ADDI) is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale, transfer, refinance, or loss of owner-occupancy before the 5-year affordability period ends triggers repayment of the unforgiven balance. The assistance is recorded in second_mortgage position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Arkansas Dream Downpayment Initiative (ADDI) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. A homebuyer education course is required, through At least 8 hours of homebuyer counseling class (HUD-certified counseling agencies, e.g., Crawford-Sebastian Homeownership Center, In Affordable Housing). ADDI is distinct from ADFA's standard 'Down Payment Assistance (DPA)' second-mortgage product (which is tied to StartSmart/Move-Up first mortgages and amortizes over 10 years up to $15,000). ADDI is a separate HOME/ADDI-funded forgivable second for FIRST-TIME buyers up to $10,000. Confirm current funding availability and exact income limits with ADFA before publishing borrower-facing values.

Arkansas Dream Downpayment Initiative (ADDI) sets its income limit as follows: Annual household income must fall within set limits based on county where property is located and household size (low-income limits); not confirmed to a single %AMI on official source - left blank to avoid guessing. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Arkansas Dream Downpayment Initiative (ADDI) can be used for single_family.

Arkansas Dream Downpayment Initiative (ADDI) serves homebuyers purchasing anywhere in Arkansas.

Applications for Arkansas Dream Downpayment Initiative (ADDI) go through Arkansas Development Finance Authority (ADFA), which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.