Arkansas USDA home loans, also known as Rural Development loans, are mortgage loans offered by the United States Department of Agriculture (USDA) to encourage Arkansas homeownership in rural and suburban areas. These loans are designed to help moderate- to low-income Arkansas families purchase homes with no down payment and at favorable interest rates. 

How do USDA home loans operate in the state of Arkansas, and do you qualify?  Following is an explanation of USDA loans and how they can help you acquire a property.

What is an Arkansas USDA Home Loan?

An Arkansas USDA Home Loan is a mortgage with no down payment for homebuyers in qualified rural and suburban locations. The Rural Development Guaranteed Housing Loan Program of the U.S. Department of Agriculture guarantees USDA loans.

The United States Department of Agriculture (USDA) offers two types of single-family rural housing loans: Direct and Guaranteed.

• Arkansas USDA Guaranteed Home Loan 

The Single-family home Guaranteed Loan Program assists low- and moderate-income individuals and families in securing finance by providing loan guarantees in the event of future default.

The USDA Guaranteed Loan Program aids qualified lenders in giving low- and moderate-income households in qualifying rural areas the chance to own adequate, modest, decent, safe, and sanitary primary residences. 100% financing is available to eligible applicants for purchasing, construction, rehabilitation, improvement, or relocation of a home in an approved rural area. The program gives a 90% loan note guarantee to approved lenders to reduce the risk of granting 100% loans to qualifying rural homebuyers — meaning there is no down payment required!

• Arkansas USDA Direct Home Loan 

This program helps low- and very-low-income applicants obtain good, safe, and sanitary housing in designated rural areas by increasing their ability to repay their mortgage loans. Payment assistance is a subsidy that temporarily cuts mortgage payments. The amount of aid is determined by the family’s income after adjustments.

Individuals and families can apply directly through their local USDA Rural Development Office.

The property must be located in an appropriate rural location to qualify for a USDA home loan. Suppose you’ve already identified a property you’re interested in acquiring. In that case, you can visit the Property Eligibility page on the United States Department of Agriculture’s website to discover whether the property qualifies.

How To Qualify For Arkansas USDA Home Loan

To qualify for a USDA Home Loan in the state of Arkansas, you must satisfy the following criteria:

• Your adjusted income must be at or below the applicable low-income level for the area where you seek to purchase a home.
• Show a willingness and capacity to repay debt
• Lack of decent, secure, and sanitary housing
• The property must be located in a rural region that qualifies.
• Comply with USDA occupancy requirements.
• The property’s physical condition must be satisfactory.

In addition to meeting income standards and identifying a suitable property or area, you must also agree to occupy the home as your principal residence. USDA loans cannot be used to purchase an investment or a second home.

To qualify, you must be unable to acquire traditional financing, but you must also demonstrate the ability to repay the loan. You must also be a citizen of the United States, a national of the United States who is not a citizen, or an eligible alien who has not been barred or suspended from participation in any government programs.

Apply For an Arkansas USDA Loan 

If Get started of your USDA Home Loan by Applying Now, or call (501) 588-7399 to speak with one of our Arkansas USDA Home Loan Specialists.