If you’re thinking of buying a home in Arkansas, there are a lot of options. There are nearly 1.4 million housing units in the state, and the homeownership rate of 66% is just above the national average of 64%, according to the U.S. Census Bureau’s 2018 American Community Survey.
Arkansas’s median housing value is $133,100, which is well below the national median of $229,700. Although home values vary by region, they remain relatively low across the state, with the highest reported median price by county being $172,000.
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AmeriSave Mortgage Corp. is an online lender that has been in business since 2002. It was one of the first to offer an offsite digital mortgage experience for customers. The company says it has financed more than 664,000 borrowers since it began operating. With headquarters in Atlanta, AmeriSave services loans in 49 states and Washington, D.C.
Pentagon Federal Credit Union, widely known as PenFed, offers borrowers access to many types of mortgages: conventional, adjustable rate, jumbo and Department of Veterans Affairs, plus refinancing loans and home equity lines of credit. The financial institution, which serves 2.8 million members, was established in 1935 and is based in McLean, Virginia.
Best for low APR
New American Funding is a mortgage lender offering a variety of home loan options to homebuyers and homeowners nationwide except for Hawaii. The company, founded in 2003 and based in Tustin, California, has originated $64.2 billion in mortgages to date.
PNC Bank is one of the largest banks in the United States, serving more than 9 million customers in all 50 states. A full-service mortgage lender, PNC offers most mortgage loan product types.
Bank of America serves roughly 67 million customers in all 50 states. The lender offers conventional, Federal Housing Administration, Department of Veterans Affairs and jumbo loans as well as home equity lines of credit and mortgage refinancing.
Guaranteed Rate, founded in 2000 and based in Chicago, offers mortgage options including conventional loans, FHA loans, jumbo loans and interest-only loans to customers in all 50 states and Washington, D.C. Borrowers can take advantage of specialized loan products and Guaranteed Rate’s online application, documentation and loan payment options.
Wells Fargo offers a variety of mortgage products nationwide. Options include conventional, government-backed and jumbo loans. You can also refinance an existing mortgage with Wells Fargo.
SoFi is an online lender founded in 2011 and headquartered in San Francisco that offers fixed-rate mortgages. Refinance, jumbo and home equity loans are also available.
Best for customer service
Rocket Mortgage, the largest mortgage lender in the nation, was founded in 1985. The Detroit-based company is best known for its fully digital experience of buying or refinancing a home. Rocket Mortgage changed its name from Quicken Loans in the summer of 2021.
Chase, one of the world’s largest banks, was founded in 1799 in New York and offers fixed-rate, refinance and other mortgage loans.
The average mortgage rate in Arkansas is currently 6.45% for the 30-year fixed purchase loan term.
Here are the interest rates offered to Arkansas residents looking to buy or refinance a home as of 02/07/2023:
- 30-year fixed purchase: 6.45%
- 30-year fixed refi: 6.6%
- 15-year fixed purchase: 5.02%
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Mortgage rates spiked this week, with the average 30-year fixed rate jumping to nearly 7% for the first time since last November. Most fixed and adjustable rates are trending much higher in recent weeks following hawkish warnings from Federal Reserve officials.
Mortgage interest rates are nearly twice as high as they were at the beginning of 2022, which continues to have a tangible impact on mortgage affordability and consumer housing sentiment. Mortgage rates are widely expected to fall throughout the course of 2023, but this recent surge comes just ahead of the busy spring homebuying season. Here are the current mortgage rates, without discount points unless otherwise noted, as of Feb. 23:
- 30-year fixed: 6.96% (up from 6.73% a week ago).
- 20-year fixed: 6.93% (up from 6.77% a week ago).
- 15-year fixed: 6.21% (up from 6.02% a week ago).
- 10-year fixed: 6.31% (up from 5.97% a week ago).
- 5/1 ARM: 5.54% (up from 5.43% a week ago).
- 7/1 ARM: 5.67% (down from 5.7% a week ago).
- 10/1 ARM: 6% (up from 5.9% a week ago).
- 30-year jumbo loans: 6.98% (up from 6.78% a week ago).
- 30-year FHA loans: 6.2% with 0.05 point (up from 5.98% a week ago).
- VA purchase loans: 6.28% with 0.05 point (up from 6.08% a week ago).
Arkansas homebuyers can get help with down payments and closing costs from these Arkansas Development Finance Authority homeownership and down payment assistance programs.
- Available to: First mortgage borrowers.
- Income limits: Vary by county.
- First-time homebuyers only?: No.
- Loan options: 30-year fixed-rate mortgages.
- Down payment and closing cost assistance: May be combined with other ADFA programs if eligible.
- Available to: Borrowers with low to moderate income who are either first-time homebuyers, a veteran or veteran’s spouse, or purchasing a home in a targeted county. Borrowers must also be using one of ADFA’s mortgage programs.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only?: No.
- Benefit: Qualifying tax-paying homebuyers can claim a tax credit of up to 50% of the mortgage interest paid per year, capped at $2,000 annually. The credit may be claimed for the life of the loan as long as the home remains the primary residence.
- Available to: Applicants of an ADFA Move-Up first mortgage who complete a homebuyer education class.
- Income limits: Vary by county.
- First-time homebuyers only?: No.
- Down payment and closing cost assistance: Borrowers get $1,000 to $10,000 for closing cost assistance from a second mortgage with a 10-year term.
- Available to: Qualifying low-income Arkansans who complete a homebuyer education class.
- Income limits: Vary by county (see income limits).
- First-time homebuyers only?: No.
- Down payment and closing cost assistance: Down payment assistance of up to 10% of the purchase price of the home, not to exceed $10,000, as a second mortgage loan forgivable over five years.
U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. For mortgage lenders, we take into account each company’s customer service ratings, interest rates, loan product availability, minimum down payment, minimum FICO score and online features.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
To recap, here are the picks:
Best Arkansas Mortgage Lenders of 2023
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