PARTICIPATING LENDERS

How much house someone can afford is sometimes a complex question to answer. There are several other questions that have to be considered including:

• What portion of my household budget do I want to spend on housing?
• What are my current income and expenses?
• How much of a loan will I qualify for?

Determining what portion of your household budget should be spent on housing is a very personal and individualized decision. You need to purchase a home that will support the lifestyle you desire. If traveling and other activities are an important part of your life, you may want to devote less of your budget to purchasing a home. If these things are not very important, you may decide having a larger home is key to the lifestyle you desire. Nobody can answer this question for you, but a mortgage loan officer can give you an estimate of your payment at different price points. Contact an ADFA participating lender today to learn more.

The amount of down payment required depends on which mortgage program you qualify for. Every prospective buyer is different, but consumers should talk to lenders about their qualifications before they give up on purchasing a home. Broadly speaking, most mortgage programs require 3-5% down plus closing costs. This may seem daunting, but ADFA can help. The Arkansas Development Finance Authority can assist you with up to $15,000.00 towards your down payment and closing costs. With some programs, this may cover the entire down payment and/or closing costs. Contact one of our participating lenders to learn more.

Once you have completed an application with one of our participating lenders, your loan officer will reserve your mortgage in the ADFA Loan Reservation System. This will lock your rate for 70 days. There is no cost to reserve a loan with ADFA. Please see one of our participating lenders to begin your application today.

The exact documentation required for your loan approval may vary, but the following items will assist your loan officer in processing your application:

• Proof of Income: Last Year’s W-2, most recent pay stub, last year’s tax return, proof of child support / alimony (if applicable), proof of other income (if applicable)
• Debts: List of all current debts (credit cards, student loan, car loan, alimony/child support) with balances and minimum payments on each
• Assets: Bank statements, investment records, retirement account statements, real estate / auto titles

If you are unable to locate any of the items above, your loan officer may be able to assist you with obtaining the required documentation. Please contact an ADFA participating lender today to begin the process.