USDA Mortgage Arkansas

USDA Mortgage Arkansas First Time Buyers Get 100% Financing

In times of the economic troubles, the words like ‘zero down payment’ and ‘low interest rates’ can sound like a blessing. USDA home loans in Arkansas are indeed, a ray of hope, for buyers with moderate to low income. You can buy homes of your choice with help of these loans without stressing yourself financially. In fact, because USDA home loans offers 100% financing and low interest rates, they are so popular among the American home buyers.

While conventional loan programs require 20% down payment, USDA home loans are zero down payment loans. USDA home loans are specifically designed for people with low income who are not able to obtain financing from other sources.

Places in Arkansas Eligible for USDA Home Loans

USDA home loans provide financing for people having income 115% of the AMI or lower and for properties that are located in USDA designated rural areas. The rural areas need not be farmlands. Any small town, fringe areas or even suburbs in Arkansas, where the population is less than 20,000 are eligible for USDA home loans in Arkansas.  Some counties that are eligible for USDA home loans are: Arkansas County AR, Baxter County AR, Carroll County AR, Dallas County AR, Lee County AR and many more. USDA updates its database every few years and includes new places and excludes the ones that have progressed considerably. So before the place you live in loses eligibility, apply for a USDA home loan and become a proud home owner.

Benefits of USDA home Loans in Arkansas

Here is a list of the benefits of USDA home loans that have helped numerous people buy a property suitable for their needs.

  • Zero Down Payments: Only a few loan programs offer this benefit and USDA is one of them. You qualify for USDA home loans without paying any down payments.
  • Low Interest rates: Owing to the financing troubles, all the banks and financial institutions have increased the interest rates. USDA home loans in Arkansas is the only ones that still offer low interest rates.
  • 100% Financing: USDA home loans offer 100% financing for buying a property and in many cases you are eligible to get 102% financing, if you include the closing costs within the loan amount.
  • Lowest Mortgage Insurance Premiums: Compared to other loan programs, USDA has the lowest mortgage insurance premiums. You have to pay an upfront fee which is 2% of the loan amount (can be financed within the loan amount) and 0.5% of the loan amount as the mortgage insurance premium, which is negligible.

  • Get Maximum Loan Amount: There are no maximum loan limits, you will be eligible to the maximum amount depending on the monthly income and debt-to-income ratio.
  • Quality without Having Reserves: USDA does not require you having any cash reserves. This is the reason why people with low income find these loans so affordable.
  • Flexible Credit Limits: People having low credit scores, no credit or limited credit history can qualify for USDA home loans.
  • Buy Any Type of Property: Various types of properties are eligible under the USDA home loan program in Arkansas. These include town-homes, condos, single family homes, new manufactured homes, and many more.

The best thing about USDA home loans in Arkansas is that you can use the funds to repair and renovate an existing property and make it safer and hygienic. The funds can be used for adding an extra room, improvement of sewer system, installation of energy efficient systems, etc. So whether you are willing to buy a new property or upgrading an existing property, USDA home loans can be of great help.

To know more about USDA home loans in Arkansas and its benefits, give us a call and talk to our experts today!