Arkansas Mortgage and Refinance Rates

Current mortgage rates in Arkansas

As of Thursday, November 21, 2024, current mortgage interest rates in Arkansas are 6.95% for a 30-year fixed mortgage and 6.16% for a 15-year fixed mortgage.

While mortgage rates are higher now than they have been in recent years, they’re close to the historical average. The good news is that home prices in Arkansas have moderated over the past year, according to ATTOM. Cities like Little Rock have seen no change in the median sales price year-over-year, and the state median price of $215,000 is one of the lowest in the U.S. Still, if you’re buying a home in Arkansas, the upward trend in rates could be squeezing your buying power. c

Refinance rates in Arkansas

Refinance rates are now much higher than the rock-bottom levels of the past few years. Still, you might consider a cash-out refinance on your Iowa home to pay for renovations or other expenses — or to explore a home equity loan or home equity line of credit (HELOC). The rise in home values has increased the equity stakes many homeowners have: In Arkansas, they’ve gained $17,000 in the last year,  according to CoreLogic.

Arkansas mortgage rate trends

While mortgage rates are difficult to predict, the current consensus is for rates to remain well above historical lows for the foreseeable future, including in Arkansas.

National mortgage rates by loan type

Mortgage statistics for Arkansas

Arkansas is one of the few states in which home prices have remained steady, or even declined in some areas. Here are more statistics about housing the state:

• Most popular cities: Little Rock, Hot Springs, Fayetteville, Fort Smith, Springdale
• Most affordable counties: Arkansas, Ashley, Dallas, Ouachita, Jackson
• Median home sales price, Feb. 2024: $215,000
• Median home value, Feb. 2024: $189,891
• Median down payment, Feb. 2024:: $19,604
• Homeownership rate, Q4 2023: 65.9% 

Sources: ATTOM, U.S. Census Bureau

Mortgage options in Arkansas

Like elsewhere in the U.S., there’s a variety of mortgage options in Arkansas to suit a range of needs and financial circumstances. Here are some of the most common:

• Arkansas conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no more than 45 percent. With a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
• Arkansas FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
• Arkansas VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent.
• Arkansas USDA loans: If you’re buying a rural property in Arkansas, you might be eligible for a mortgage guaranteed by the U.S. Department of Agriculture (USDA). These loans don’t require a down payment, but you’ll need to purchase in a designated rural area and meet the area’s income limits.

First-time homebuyer programs in Arkansas

If you’re an eligible first-time homebuyer in Arkansas, you might qualify for a lower-cost mortgage or down payment assistance. Many of these programs are facilitate by the Arkansas Development Finance Authority (ADFA).

StartSmart Mortgage Loan program: First-time homebuyers in Arkansas can apply for a StartSmart mortgage, which comes with a below-market interest rate in the form of an FHA, VA or rural development (USDA) loan. Applicants can’t exceed maximum income limits and must buy a property at or below $425,000.

Move-Up program

The ADFA works with participating lenders to connect homebuyers with an affordable mortgage through its Move-Up program, offering either a conventional, FHA, VA or USDA loan for buyers of single-family homes, with a 30-year fixed rate.

Down payment and closing cost assistance

The ADFA administers down payment assistance for those participating in the StartSmart or Move-Up program. This assistance offers qualifying, low- to moderate-income applicants up to $15,000 in closing cost assistance as a second mortgage with a 10-year term.

Mortgage credit certificate (MCC)

If you’re a low- or moderate-income homebuyer with an ADFA mortgage, you might be interested in a mortgage credit certificate (MCC), which converts a portion of the mortgage interest you pay into a non-refundable federal tax credit. The maximum credit per year is $2,000, and can be claimed for the life of the loan so long as you stay in the home.

Among the eligibility criteria, you’ll need to be a first-time homebuyer or a veteran or veteran’s spouse, or purchasing a home in a targeted county (which includes Crawford County, Jefferson County and White County). You’ll also need to work with an ADFA-approved lender, and minimum credit score, household income limits and a home purchase price limit of $300,000 apply.

Jonesboro Homeownership Assistance Program

The Jonesboro Homeownership Assistance program is designed to help low- to moderate-income first-time homebuyers purchase homes within the city limits of Jonesboro, Arkansas. Through the program, applicants can receive a grant to help with the down payment and closing costs. Once approved, the funds are paid directly to the title company.

The home purchased must meet HUD Housing Quality Standards, and the household must meet the federal income guidelines. Applicants must complete a HUD-approved homebuyer education course, as well.

How to find the best mortgage rate in Arkansas

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Additional Arkansas mortgage resources

• Arkansas loan limits by county: Learn the conforming and FHA loan limits for your county.
• Arkansas mortgage lenders: Explore mortgage lenders in your state.
• Arkansas homeowners insurance: Compare policies from a variety of providers.

Meet our Bankrate experts

Written by: Andrew Dehan, Writer, Home Lending

I’ve covered mortgages, real estate and personal finance since 2020. At Bankrate, I’m focused on all of the factors that affect mortgage rates and home equity. I enjoy distilling data and expert advice into takeaways borrowers can use. Prior to Bankrate, I wrote and edited for Rocket Mortgage/Quicken Loans. My work has been published by Business Insider, Forbes Advisor, SmartAsset, Crain’s Business and more.

Read more from Andrew Dehan

Edited by: Troy Segal, Senior Editor, Home Lending

I’ve been writing and editing stories in the personal finance sphere for two decades, for publications like Business Week and Investopedia, covering everything from entrepreneurs to taxes. Since coming to Bankrate, I’ve concentrated on real estate, mortgages, renovations and other financial aspects of homeownership — helping people understand how a home isn’t just a place to live, but an investment that’s important to building and bequeathing wealth. 

Read more from Troy Segal