- Perfect Credit Not Needed
- Only 3.5% Down
- Your Land Can Be Your Downpayment
- 100% Financing for Veterans
Arkansas USDA Home Loan eligibility will be determined by your financial history, and the property you're choosing to buy. First, the property in question must be in a USDA defined rural area. USDA defined rural areas can change from state to state, but are typically defined as any property located in a rural area, open country, or an area with less than 25,000 residents. This means that even if a property is located on the outskirts of a major city, in some small suburban community, it may still be defined as USDA eligible. For more information on a USDA eligible property in your area, please contact your PRMI representative.
Secondly, your financial and credit history will be evaluated. You need to have an above average credit history with a minimum credit score of 620, and no outstanding debt payments in collections, and no foreclosures or bankruptcies in the past 3 years. You must have steady and reliable income and be able to prove that you can afford monthly mortgage payments, as well as any other bills and previous debts you may have incurred. You must be a U.S. citizen, and be within in the income limitations for that designated area.
If you're in the market for a new home or want to refinance your existing mortgage, you may want to consider a loan insured by the Federal Housing Association (FHA). An FHA loan is available to home buyers with low incomes and those needing low down payments who may not qualify for conventional mortgages. It also appeals to lenders because of the protection it offers - and while the FHA doesn't actually give the loans, they insure them. So if homeowners default on the loans, the lender is protected from the loss by the FHA insurance.
Borrowers can qualify for an FHA loan with a down payment as little as 3.5% and a credit score of 580 or higher. The borrower’s credit score can be between 500 – 579 if a 10% down payment is made. One important note: the lower the credit score, the higher the interest borrowers will receive.
These are basic service requirements for veterans, active duty service members, National Guard and reservists. It is ultimately up to the VA to determine eligibility for the home loan program. The requirements are established by the Department of Veterans Affairs. One of our loan specialists can help you determine if you qualify. We are standing by to help you.
Veteran homebuyers in Arkansas aren't required to reach a particular level of income to use their home loan benefits; however, borrowers are expected to have stable, reliable income that will cover their new mortgage payment and other household expenses.
The VA also requires that borrowers in Arkansas maintain a certain amount residual incomewhich increases the chances of VA borrowers earning sufficient income to meet all financial obligations, and also ensures borrowers have a cushion in the event of an emergency reducing the likelihood of foreclosure.
One of our loan specialists can walk you through the enitre eligibility process and answer any question you may have. Contact us today!
Primary Residential Mortgage, Inc.
Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.