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:

Fort Smith Homebuyer Assistance Program

Must be purchasing in the city limits of Fort Smith
$1,000 – $5,000 to help with down payment and closing costs/additional principal reduction only if there is a demonstrated need.
$350 counseling fee for using this assistance (comes out of grant).
NO REPAYMENT as long as client lives in the home for 10 years(no interest/no payment).
No first time homebuyer requirement.
FHA appraisal of If not FHA, city staff will fo an HQS inspection (no expense to buyer)
Homes built prior to 1978 must be lead inspected by our certified lead inspector on staff.
Must use an approved lender.
Must be under “Low-Income Guidelines“.
Homebuyer counseling class (8 hours) is required-View schedule here

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 Benefit 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://www.state.ar.us/adfa
Loan Term – 30 years only (No Prepayment Penalty)
Purchase Price Maximum – $225,000.
Income Limits – Based on county where property is located and the number in household

Crawford County – 1-2 person household $60,240- 3 or more person household $70,280

Sebastian County – 1-2 person household $57,360- 3 or more person household $66,920

Must be a first-time homebuyer except in targeted counties
Buyer must occupy property as primary residence
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://www.state.ar.us/adfa
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
NOTE: ADDI funds can be used without using the Bond Program first mortgage. To access the ADDI funds, contact ADFA’s HOME Department at 501-682-5900

C-SHOC Credit Rewards

Provides help to potential homebuyers with credit issues
C-SHOC pulls credit reviews with client, and disputes incorrect items with all three major credit reporting agencies
Up to $500 can be granted to be paid toward collection or other derogatory credit (subject to funding availability)
$500 is matching funds only
Client must be able to obtain financing once assistance is awarded
Client must attend 5 weeks of Financial Fitness traing courses (see below) to obtain assistance
No income guidelines

Financial Fitness Course

5 week course designed to help clients better understand money management, banking, investments and credit
Courses held troughout the year
Client must attend all 5 courses to receive assistance for whatever program they are applying for.
View schedule here