Arkansas Mortgage and Refinance Rates

Current mortgage rates in Arkansas

As of Thursday, September 28, 2023, current mortgage interest rates in Arkansas are 7.82% for a 30-year fixed mortgage and 7.02% 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. Still, if you’re buying a home in Arkansas, this upward trend in rates could be squeezing your buying power. You can use the table above to find competitive home purchase and refinance offers. Compare, apply and start saving today.

Refinance rates in Arkansas

When you’re ready to refinance, shop around to make sure you’re getting the best possible rate and terms. A cash-out refinance might be an option for you if you want to take out equity to pay for home renovations or consolidate debt.

If you want to tap your equity but don’t want to refinance, you could alternatively look into a home equity line of credit (HELOC) or a home equity loan.

How to find the best mortgage rate in Arkansas for you

Compare mortgage rates from at least three different mortgage lenders, and know the difference between APRs and interest rates. The APR, or annual percentage rate, includes any points and fees, so it’s a more accurate assessment of the cost of the loan.

Note: Your location can impact the rate quotes you get. If you’re applying for a home in Little Rock, for instance, you might be quoted a different rate than for a similar home in Bentonville. 

Mortgage options in Arkansas

If you’re looking for a mortgage in Arkansas, consider these options:

• Arkansas conventional mortgages: For a conventional mortgage in Arkansas, you’ll generally need a debt-to-income (DTI) ratio of no more than 45 percent and a credit score of at least 620. The minimum down payment is typically 3 percent (at that level, you’ll need to pay private mortgage insurance, or PMI, premiums, as well).
• Arkansas FHA loans: If you have a lower credit score, a loan insured by the Federal Housing Administration (FHA) might be a better option. You can get an FHA loan with a credit score of 580 and a down payment of 3.5 percent.
• Arkansas VA loans: If you’re a qualifying veteran, an active-duty member of the military or a surviving spouse, you can get a mortgage guaranteed by the Department of Veterans Affairs (VA). VA loans don't require a down payment or mortgage insurance, but you do need to pay a funding fee.
• Arkansas USDA loans: Outside of Arkansas larger cities and towns, there are many properties eligible for a loan backed by the United States Department of Agriculture (USDA). Like VA loans, USDA loans don’t require a down payment. However, you’ll need to meet area-specific income requirements.

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).

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 two types of down payment assistance for those participating in the Move-Up program:

• Arkansas Dream Down Payment Initiative (ADDI): Through ADDI, eligible low-income buyers could receive up to $25,000 in closing costs and down payment assistance as a second mortgage with no monthly payment. The mortgage is forgivable over five years if you borrow less than $15,000, or over 10 years if you borrow more than $15,000.

• Down Payment Assistance (DPA): This 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.

Crawford-Sebastian Homeownership Program

For buyers in Crawford and Sebastian counties, the Homeownership and Asset Development Center offers homeownership assistance for low- to moderate-income buyers. This help includes counseling, education and down payment assistance. If you’re interested in building a home in Fort Smith, you can also apply for a subsidy of up to $25,000 based on your eligibility.

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.

Additional Arkansas mortgage resources

• Arkansas first-time homebuyer resources
• Arkansas loan limits by county
• Arkansas mortgage lenders