Maybe you are buying your first home in Arkansas, or perhaps you are relocating to Arkansas from another state. Either way, it’s important that you educate yourself on Arkansas home loans before shopping for a home and mortgage. This article explains what you will need to know before buying a home in Arkansas:
The median price of a home in Arkansas is $72,800. The price of homes in Arkansas varies widely between zip codes. For example, in Fayetteville, Arkansas, the median price of a home in the summer of 2005 was $207,000; however, in both Little Rock and Fort Smith, Arkansas, the median price of a home was $165,000. Average interest rates in Arkansas are among the highest in the nation.
Arkansas law states that closed-rate second-rate mortgages and home equity lines of credit are not eligible for purchase. In addition, Arkansas’ Income Tax Surcharge Act imposes a 3% levy on Arkansas taxpayers.
Arkansas’ HomeToOwn program offers FHA and VA programs to qualified residents, and they offer programs like the Community Home Buyer Program, Fannie Mae My Community Mortgage program, and Rural Development program. All of these programs offer below-market interest rates and down payment assistance to qualified buyers.
