Whether you need support with rent, mortgage, utilities, or energy assistance, there are state and local programs to sort you out. There are also non-profits to offer temporary and permanent housing solutions depending on your level of need. Most of these programs focus on the most vulnerable members of the community, including the low-income, disabled, and senior residents of Arkansas. Read this article for housing resources in Arkansas.
Arkansas Development Finance Authority (ADFA)– Mortgage Credit Certificate Program (MCC)
MCC program was created to make homeownership more affordable for the low-income families in Arkansas. The program mostly provides support to first-time homebuyers. MCC allows eligible homebuyers to make claims of up to 50% of the mortgage interest for the tax credit. The amount is payable per year and is capped at $2,000. You can claim the tax credit for the life of the loan as long as you are willing to occupy the property as your primary residence. Who qualified for the program assistance? You must a first-time buyer, a veteran, or buying a new home in one of the targeted areas (IRS-designated areas of economic distress). Your income must not exceed the low-income limits in your area. To qualify for this MCC, you must agree to occupy the home as your primary residence, and its purchase price must be $270,000 or less. Also, you must make use of an approved lender, accessible at https://homeloans.arkansas.gov/lenders. Find out more at https://homeloans.arkansas.gov/mcc/.
ADFA Down Payment Assistance
The biggest challenge most families in Arkansas face is saving funds for making down payments and covering closing costs. The problem is common among low-income families who are willing to become homeowners. For this reason, Arkansas Development Finance Authority established the Down Payment Assistance. To qualify for DPA, applicants must have an ADFA Move-Up first mortgage. You must also be a first-time homebuyer and have an income not exceeding the low-income limits in your area. Read more about the program at https://homeloans.arkansas.gov/dpa/.
Arkansas Dream Down Payment Initiative (ADDI)
ADDI is a support program that helps Arkansas residents with down payment assistance through HME funds. Through this program, applicants receive up to 10% of their new home purchase price, which should be $10,000 or less. To qualify for the program assistance, you must be a participant of the ADFA Move-Up Loan Program. You must be a first-time homebuyer and have an income not exceeding maximum limits. This is a second mortgage loan, and you don’t have to make monthly payments. Besides, the program loans are forgivable if you maintain the occupation of the property for at least five years. You must attend an eight-hour homebuyer class. Reach out to HUD-Approved Homebuyer Counseling Agency to help you with the process. Visit https://apps.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?&webListAction=search&searchstate=AR. You must be willing to be a homeowner and possess mortgage qualifications. You must also have an approved lender, available at https://homeloans.arkansas.gov/lenders. For more details, please visit https://homeloans.arkansas.gov/addi/.
HOME Investment Partnerships
HUD allocates the funds for this program to ADFA who distributes the finance to the local eligible non-profits who in turn help in the distribution of the funds to qualified low-income families in need of housing assistance. The program funds may be used to construct new buildings, rehabilitation of existing structures, and providing rental assistance to individuals and families. The fund recipients should read the HOME Program Operations Manual to learn the rules for different program activities. Access the manual at http://adfa.arkansas.gov/media/file/2018_HOME_Policy___Operations_Manual_1-22-2018_FINAL_1.pdf. Want to apply? Please wait until notices about program funds availability are made. Program fund notification is available at https://adfa.arkansas.gov/notice-funding-availability/. Read more about the program at https://adfa.arkansas.gov/program/home-investment-partnership/#programs-content.
National Housing Trust Fund (NHTF)
The NHTF was established to help provide more affordable housing opportunities. To qualify for the program support. Applicants must have business operating in Arkansas. Your family must have an income not exceeding 30% of the area median income. The program mainly focuses on helping homeless veterans, those with special needs, mental problems, and those leaving rehabilitation facilities. Who receives the program funds? Public Housing Agencies (PHAs), profit or non-profit organizations. Please visit https://adfa.arkansas.gov/program/national-housing-trust-fund/#programs-content for more details about the program.
Arkansas Fresh Start Rental Assistance Program
The program is administered at the state level by the 15 Community Action Agencies operating in certain counties in Arkansas. Your income must be below the federal poverty line to receive the program assistance. The program aims to enable low-income families to obtain safe and affordable housing in the surrounding communities and help them achieve stability. The program also helps the homeless of individuals at risk of becoming homeless. Visit https://arfreshstart.com/#acaaa-map to apply. Were you denied benefits in your previous application? Well, you can always make another application if you are currently homeless or living with a family due lack of other options for housing. once you qualify, the Fresh Start Program funds will pay your first month’s rent, security deposit, and additional funds for another one and a half’s rent. Wondering how long it takes to complete your application for rental assistance? It normally 10 calendar days to complete your application. If your application is incomplete, you may need to reapply. Find out more at https://arfreshstart.com/.
USDA’s Single-Family Housing Direct Home Loans in Arkansas
This program aims to assist low-income families with the financial support they need to obtain safe and affordable housing. The program works to improve the repayment ability and reduce the monthly mortgage payments for qualified applicants. The program operates in the USDA-eligible rural areas and is committed to reducing homelessness in those places. The amount of assistance a family receives depends on the income and the number of people in the family. You must demonstrate a willingness to repay the loan, agree to occupy the property as your primary residence, and meet the U.S. citizenship requirements to qualify for the program assistance. Also, you must have good reports from the federal housing programs if you ever participated at some point. The interest rates of loans can be as low as 1%, and they are repayable over 33 years except for the extremely low-income families who may have up to 38 years to make repayments. A down payment is not required in this program and applicants with more assets than the limits may use these assets for payment. Visit http://rd.usda.gov/contact-us/state-offices to make an application. Find out more https://www.rd.usda.gov/programs-services/single-family-housing-direct-home-loans/ar.
Arkansas Section 8 Housing Program
The Section 8 Housing program is federally funded and run by the Public Housing Authorities (PHAs). The Program provides rental assistance to low-income families to help them obtain quality and affordable housing in the private market. The applicants are allowed to chose where they want to live, as long as the housing unit meets the HUD’s quality standards. Once your application is approved, the housing vouchers are handed directly to your landlord. The payment assistance covers a portion of your rent, and you are required to contribute your income towards the rest of the monthly rent. Each family will contribute 30% or 40% of their income. The PHAs manage a waiting list where applicants are placed once they qualify for the program support. You may receive assistance depending on the fund’s availability once you reach the top of the waiting list. Who is eligible for the rental assistance? You have to be a senior U.S. citizen or provide proof of legal residence in the country, meet the low-income requirements and have at least one disabled member of your family. Find out more at https://www.hud.gov/states/arkansas/renting.
Arkansas Low-Income Home Energy Assistance Program
LIHEAP is administered by the U.S. Department of Health and Human Services (DHHS). The program is designed to help reduce the burdens of home energy to the low-income families who spend the most of their earnings in paying for heating bills. The aim of the program is for residents of Arkansas to live out of the harsh weather. The program is operated in all the 75 counties in Arkansas and is run by Community Action Agencies. Assistance is available during both the winter and summer seasons for qualified applicants. There are two types of benefits offered within the program in Arkansas, including regular and crisis assistance programs. The regular benefits depend on the size and level of income of the household. On the other hand, crisis assistance is designed for families facing cooling or heating emergencies, and its benefits depend on how urgent the family needs help. Your income must be at or below 60% of the State Median Income. Read more about the program at https://www.adeq.state.ar.us/energy/incentives/liheap.aspx.