Down Payment and Closing Cost Assistance

The Crawford-Sebastian Homeownership Center offers a variety of programs to help with the down payment and closing costs for both first time and repeat home buyers.

Our assistance includes a variety of grants and are offered to low to moderate income families. All of our assistance programs require that the buyer occupies the home being purchased as their primary residence and that they utilize an approved lender.

The Homeownership and Asset Development Center of C-SCDC provides down payment assistance to over 300 homebuyers each year. The clients must attend a C-SCDC Homebuyer Education class and participate in one-on-one budget counseling.

Some of the Down Payment Assistance programs available are:

Not all requirements are listed below. Please complete an application in order to be approved for assistance.

City of Fort Smith

  • Must be purchasing in the city limits of Fort Smith
  • 3.5% of sales price to help with down payment and closing costs/additional principal reduction only if there is a demonstrated need.
  • NO REPAYMENT as long as client lives in the home for 5 years(no interest/no payment).
  • No first time homebuyer requirement.
  • The City of Fort Smith will do an inspection on the property at no expense to buyer or seller.¬† If home is built before 1978, the house will also be visually inspected for lead based paint.
  • Must use an approved lender.
  • Must be under Low Income Guidelines”
  • Homebuyer counseling class (8 hours) is required-View schedule here
  • Sales price limit is $125,000 effective March 1, 2017.

Affordable Housing Program

  • $4,000 Grant for down payment and closing cost assistance
  • NO REPAYMENT as long as buyer stays in home 5 years
  • Must use Armstrong Bank for financing
  • $500 counseling fee for using this assistance (comes out of grant)
  • Must be a first-time homebuyer or a single parent with dependents
  • Available in Crawford and Sebastian Counties (some Oklahoma areas also)
  • $500 investment by buyer
  • Must be under “Low Income Guidelines”.
  • Homebuyer counseling class (8 hours) is required-View schedule here

Arkansas Development Finance Authority  Home to Own Program (Bond Money)

  • Type of loan- First Mortgage (FHA, VA, RD)
  • Interest Rate – Subject to change with advance notice for current rate go to http://adfa.arkansas.gov
  • Loan Term – 30 years only (No Prepayment Penalty)
  • Purchase Price Maximum – $250,000.
  • Income Limits – Based on county where property is located and the number in household

Crawford County – 1-2 person household $63,480- 3 or more person household $74,060

Sebastian County – 1-2 person household $56,520- 3 or more person household $65,940

  • Two- 100% Loan Products. VA & Rural Development with No Mortgage Insurance.

Down Payment Assistance (DPA)

  • Type of loan – Second Mortgage
  • Purpose of loan – cover downpayment, closing costs and prepaids
  • Loan Amount – $1,000 to $6,000
  • Interest Rate – subject to change – for current rate go to http://adfa.arkansas.gov
  • Loan Term – 10 years
  • Homebuyer counseling class (8 hours) is required-View schedule here
  • Cash back to borrowers at closing to cover expenses paid up front

American Dream Downpayment Initiative (ADDI Program)

  • Purpose of loan – Downpayment and closing costs
  • Amounts up to 6% of the purchase price not exceeding $10,000
  • Must be a first-time homebuyer
  • Income Limits – must be under “Low Income Guidelines”.
  • Homebuyer counseling class (8 hours) is required-View schedule here

Financial Fitness Course

  • This course is designed to help clients better understand money management, banking, investments and credit
  • Courses held troughout the year
  • View schedule here

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