Buying your first home in Northwest Arkansas is more achievable than many people realize, thanks to a range of state and federal programs designed to help first-time buyers with down payments, closing costs, and favorable loan terms. If you’ve been told you need 20% down to buy a home, that’s simply not true — many NWA buyers purchase with 3% or even 0% down using the right programs.

This guide covers the major first-time buyer programs available to Arkansas residents in 2026.

ADFA Move-Up Program

The Arkansas Development Finance Authority (ADFA) offers the Move-Up program, which provides competitive 30-year fixed-rate mortgages to eligible Arkansas homebuyers. This program is available to both first-time and repeat buyers and can be combined with down payment assistance.

Key features: Below-market interest rates, 30-year fixed terms, available through participating lenders statewide. Income limits and purchase price limits apply and vary by county. In NWA’s Benton and Washington Counties, the limits are generous enough to accommodate most moderate-income buyers.

ADFA Down Payment Assistance (DPA)

ADFA’s down payment assistance program provides up to $15,000 in assistance that can be used toward your down payment and closing costs. This is structured as a second mortgage with favorable terms — often forgivable over time if you remain in the home.

Key features: Up to $15,000 in assistance, can be combined with the ADFA Move-Up loan, must be used with an ADFA-approved lender, income and purchase price limits apply.

FHA Loans

Federal Housing Administration (FHA) loans are one of the most popular options for first-time buyers nationwide, and they work exceptionally well in the NWA market. FHA loans require as little as 3.5% down with a credit score of 580 or higher.

Key features: 3.5% minimum down payment, more flexible credit requirements than conventional loans, seller can contribute up to 6% toward closing costs, competitive interest rates. The tradeoff is mortgage insurance premiums (MIP), which add to your monthly payment but make homeownership accessible at lower price points.

In NWA, FHA loans are particularly useful for buyers targeting homes in Springdale, Pea Ridge, Gravette, and other affordable communities where purchase prices fall well within FHA loan limits.

VA Loans (Veterans)

If you’re a veteran, active-duty service member, or eligible surviving spouse, VA loans offer the most favorable terms available: zero down payment, no mortgage insurance, and competitive interest rates. VA loans have no purchase price cap (though lenders may impose their own limits), making them usable across all NWA price points.

Key features: $0 down payment, no monthly mortgage insurance, competitive rates, flexible credit requirements. If you have VA eligibility, this should be your first option in virtually every scenario.

USDA Loans

The USDA Rural Development loan program offers zero-down financing for homes in eligible rural areas. While NWA’s core cities (Bentonville, Rogers, Fayetteville, Springdale) are generally not USDA-eligible, many surrounding communities — including Pea Ridge, Gravette, Gentry, Farmington, West Fork, Lincoln, Elkins, and Goshen — often qualify.

Key features: $0 down payment, competitive rates, lower mortgage insurance than FHA, income limits apply. For buyers willing to purchase in USDA-eligible areas, this is one of the best zero-down programs available.

Conventional Loans with 3% Down

Conventional loan programs like Fannie Mae’s HomeReady and Freddie Mac’s Home Possible allow qualified buyers to purchase with as little as 3% down. These programs often have lower mortgage insurance costs than FHA loans for buyers with credit scores above 680.

Key features: 3% minimum down, potentially lower monthly costs than FHA, mortgage insurance cancels automatically at 78% loan-to-value, income limits may apply in certain areas.

How to Get Started

The first step is getting pre-approved with a lender who knows these programs well. Not every lender offers ADFA products or has experience with all loan types, so choosing the right lender matters.

Contact Alyssa Amos at (479) 579-6434 — she works with trusted local lenders who specialize in first-time buyer programs and can walk you through every option available for your specific situation. Alyssa will help you understand your buying power, identify the programs you qualify for, and find the right NWA home for your budget.