State Buyer Guide

First-Time Home Buyer Guide
for Arkansas

Down payment assistance, Arkansas housing programs, closing cost estimates, and what to know before buying — including from FSBO sellers.

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$195,000
Avg Home Price
0.62%
Property Tax Rate
~$4,485
Est. Closing Costs
0.33% (split buyer/seller)
Transfer Tax

Arkansas Housing Finance Agency Programs

The Arkansas Development Finance Authority (ADFA) is your primary source for below-market mortgage rates and down payment assistance in Arkansas. Programs are available through approved lenders — not directly through the HFA.

ADFA Move-Up Loan Program
Below-market rate typically 0.25–0.75% below current market rates

30-year fixed-rate mortgages at below-market rates for first-time buyers.

Income limit: $137,000 (1–2 person); $158,000 (3+ person)
Learn more at Arkansas Development Finance Authority (ADFA)
ADFA Down Payment Assistance
Up to $15,000 as a 10-year second mortgage at 5% interest

Second mortgage for down payment and closing costs.

Income limit: $137,000 (1–2 person); $158,000 (3+ person)
Learn more at Arkansas Development Finance Authority (ADFA)
High Value — $240/funded loan

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Closing Costs in Arkansas

Typical Closing Cost Range
2.3% of purchase price

On a $195,000 home: approximately $4,485

Transfer Tax
0.33% (split buyer/seller)

Arkansas charges a real property transfer tax of $3.30 per $1,000, typically split equally between buyer and seller, so buyers pay roughly 0.165% of the purchase price.

Attorney at Closing?
Yes — Arkansas is an attorney-closing state

Attorney presence is required at closings in Arkansas. Budget $300–$600 for the attorney fee.

Key Tips for Buying in Arkansas

  • Arkansas has very low home prices — your dollar goes further here than almost anywhere in the country.
  • Tornado season (spring) is real — ask whether the home has a storm shelter and check flood plain proximity.
  • Natural gas is common for heating — ask about average utility costs from the seller before closing.
  • Little Rock and Bentonville (Northwest Arkansas) are the two strongest job markets in the state.
Home Inspection

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Legal Help for Arkansas Buyers

As an attorney-closing state, Arkansas requires a licensed real estate attorney to conduct your closing. You'll also want one to review your purchase agreement.

Legal Help for FSBO Buyers

Nolo

Nolo has been the go-to legal resource for DIY buyers since 1971. Their real estate guides explain purchase agreements, contingencies, and closing in language anyone can understand.

Browse Legal Guides
LegalZoom

Get a real estate attorney to review your purchase agreement or help you draft an offer letter — often for a fraction of traditional legal fees.

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US Legal Forms

Download state-specific purchase agreements, addenda, and disclosure forms — written by attorneys, ready to use in your state.

Browse Real Estate Forms

Frequently Asked Questions

What first-time buyer programs are available in Arkansas?

Arkansas first-time buyers can access programs through the Arkansas Development Finance Authority (ADFA) (https://www.arkansas.gov/adfa/), including the ADFA Move-Up Loan Program (Below-market rate typically 0.25–0.75% below current market rates) and the ADFA Down Payment Assistance (Up to $15,000 as a 10-year second mortgage at 5% interest). Federal programs like FHA loans (3.5% down) and USDA loans (0% down in eligible areas) are also available.

What are typical closing costs in Arkansas?

Closing costs in Arkansas typically run 2.3% of the purchase price. Transfer tax: 0.33% (split buyer/seller). Arkansas charges a real property transfer tax of $3.30 per $1,000, typically split equally between buyer and seller, so buyers pay roughly 0.165% of the purchase price.

Do I need an attorney to buy a home in Arkansas?

Attorney presence is required at closings in Arkansas. Budget $300–$600 for the attorney fee.

What is the average home price in Arkansas?

The median home price in Arkansas is approximately $195,000. Property taxes average 0.62% of assessed value annually.

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