Arkansas Dream Downpayment Initiative (ADDI)

What is 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.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from HOME Investment Partnerships Program (HUD) / American Dream Downpayment Initiative funds administered by ADFA.

How much assistance does it provide?

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.

Do you have to pay it back?

Arkansas Dream Downpayment Initiative (ADDI) is forgiven after 5 years, so a buyer 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.

Who qualifies?

Arkansas Dream Downpayment Initiative (ADDI) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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

Where does it apply?

Arkansas Dream Downpayment Initiative (ADDI) is a federal program, so it is not limited to Arkansas.

How do you apply?

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.

1. 1

   Take a homebuyer education course

   Required by the program, through At least 8 hours of homebuyer counseling class (HUD-certified counseling agencies, e.g., Crawford-Sebastian Homeownership Center, In Affordable Housing).

2. 2

   Contact Arkansas Development Finance Authority (ADFA) to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.