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Home Loans In Hope, Arkansas
Hope Arkansas is a very established and stable community in South Arkansas. There is just over 10k people who live in Hope. It’s most famously known for being the birth place of former president Bill Clinton. The housing market is very stable. Homeowners in Hope have access to a broad range of loan products such as FHA, Conventional, VA and USDA Loans. Of the available loan types the USDA Rural Development loan seems be one of the more popular choices.
Not only is the Rural Development loan popular in Hope it is one of the most popular Arkansas mortgage products across the board. Homeowners continue to take advantage of this aggressive mortgage product. On the surface the 100% financing feature is what many often assume the draw is and while that is certainly a big piece there are many other reasons why it is such a popular product.
When it comes to monthly mortgage insurance the RD Loan is second only to the VA loan which has no monthly mortgage insurance. The factor that the RD loan uses is a low .50%. The FHA loan for example has a monthly factor of .85%. This difference can result in saving hundreds if not thousands of dollars over the life of the loan. Outside of savings it also allows borrowers to afford more home for the same amount of money.
Another big draw of this loan product is how flexible the credit criteria is. Many of the guidelines mirror those of the FHA Loan such has the bankruptcy and foreclosure requirements which are 2 and 3 years removal. Boarders in Hope also have the benefit of min trade line requirements. If a borrower does not have the required trade lines they can use nontraditional credit such as cell phone bills.
All these things benefits along with seller concessions of 6% make the home loan of choice in Hope Arkansas the USDA RD Loan. Seller concessions is a term that refers to the percentage of the borrower’s closing costs the seller can pay. More often than not this is more than enough to cover everything. The benefits are great for this loan.