Arkansas First Time Home Buyer Loans

If you’re a first time home buyer in Arkansas, you’re in luck.  Arkansas is good state in which to purchase a first home due to its low median home cost and high ownership rate.  But purchasing a home can be stressful for those who have never done it before.  Our goal is to help you wade through the confusion and complete your home purchase successfully.

Arkansas First Time Home Buyer Information

If you’ve never gone through a home purchase, you may be unsure about the steps you need to take.  Don’t worry.  We’ve developed a highly thorough first time home buyer checklist to help you get through the process and keep the steps organized in your mind.  The most essential steps are listed here.

• Understand your mortgage needs.  This is crucial.  If you take on a mortgage that is too expensive for you to handle, you’ll end up in bad shape and risk losing your home.  Make sure you know what you can afford and what you need on the way in.
• Know your loan type options.  There are numerous different mortgage packages available to you, and all of them are unique and different from the rest.  Take the time to learn about them and determine which one best meets your needs.  As a first time homebuyer, one mortgage that you may want to strongly consider is the FHA loan program.
• Find out what your credit score is.  Make sure your credit score is high enough to qualify you for a mortgage before you try to apply, or you’ll be wasting your time.  It’s worth spending a year or so to repair your credit if you need to.
• Analyze mortgage rates offered by several lenders.  You need to know what the marketplace is offering.  The interest rate you get on your loan is the price of the loan itself.  Find the lender who can offer you the lowest mortgage rate.
• Obtain preapproval for your mortgage.  Select a lender and provide him or her with whatever information he or she requests in order to preapprove you for your future loan.  After this, you’re ready to begin searching for a home to purchase.

This isn’t a comprehensive list of the steps involved, but it’s the basics.  For a lengthier list, click on our first time home buyer checklist link above.

You can use the first time home buyer mortgage calculator below to determine a rough estimate of what your monthly mortgage payment will look like with your new loan.

1st Time Home Buyer Loan Programs

First time homebuyers are specially qualified to take advantage of the Arkansas FHA loan program, a government backed mortgage assistance program that is designed to help homebuyers with minimal equity and cash reserves purchase the homes they need.

FHA mortgages are unique and offer low rates and lenient terms.  You don’t need to have high credit and you don’t have to make a large down payment.  You will be required to purchase private mortgage insurance (PMI), but depending on your situation the benefits may outweigh the costs.  There are limits to how much you can borrow, though.  Check the Arkansas FHA loan limits in your area before you borrow.

If you need additional information about your FHA options, check out the Arkansas page of the FHA website.

About Arkansas

Arkansas is a state in the southern portion of the US.  The largest city and capital of the state is Little Rock.  The state boasts many natural parks and deep ties to American history.

In Arkansas the homeownership rate is 69.4% and the median home price is $72,800.  The national averages are 66.2% and $119,600 respectively.

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Lenders in: Arkansas.