Home buyers in Arkansas have a great option when it comes to the financing of their new home. The Arkansas USDA Mortgage is often considered by many as the best loan available. The USDA Loan is 100% no money down. Buyers can by a home without having to have a down payment. Besides the no money down feature there are several other features that are popular with Arkansas home buyers.
The Arkansas USDA Rural Home Loan has very flexible credit standards. Buyers can obtain a loan with a 620 credit score. Also a person can get financing after being two years removed from bankruptcy. While the USDA Loan does have trade line requirements if a buyer does not have those trade lines alternative trade lines such as utility bills can be used.
The USDA Loan does have its own form of mortgage insurance with is a called a guarantee fee. There is a upfront and an annual fee. The upfront percentage used is 2.75%. The upfront fee does not have a huge impact on the payment because it is rolled into the loan and paid out over 30 years. The annual fee is paid out monthly and it has a bigger impact on the monthly payment. The factor for it is 50%. While this does add to the monthly it is still much lower than other loan types that has mortgage insurance.
Arkansas home buyers can also greatly benefit from the closing cost feature of the USDA Rural Loan. It allows the home seller to pay up to 6% of the sales price towards the buyers closing costs. In most cases this is more than enough to cover all costs such as closing costs and pre-paids. A good example of this would be on a transaction where the sales price is $100,000 the seller can pay up to $6,000 towards the buyers closing costs.
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.