Arkansas FHA Loans and Refinancing
For most people, buying a home will be the most significant financial investment that they will ever make in their lives. Fortunately, Arkansas FHA loans are available for home buyers in Arkansas. Combine the financial outlay with the huge excitement and emotional aspect of the purchase and buying a house is a major life change!
While you're thinking about how many bedrooms you�d like, which school district you want your children to attend, and how large a yard you'd like, there are also serious financial considerations to buying a house, namely the type of loan you'll be obtaining. Unfortunately, as with any other large event in our lives, buying a house can often be a confusing and slightly overwhelming experience as well, so learning how to use the FHA program in Arkansas is key for home buyers looking for a simpler approach.
FHA Loan Benefits
Traditionally, most loans taken out from a bank require 20% of the purchase price in cash from the buyer, and credit requirements are pretty stringent. In recent years there have been a whole host of other types of loans from balloon loans to no-cash down plans, but due to the current states of the economy and the housing market, these plans have been curtailed. There are, however, a few options for you if you'd like a mortgage with less strict requirements, one of which is the Arkansas FHA loan program.
The Federal Housing Administration underwrites loans on the FHA program in order to provide home buyers who might not qualify for traditional loan programs with other options. Buyers need only have 3.5% down instead of the traditional 20%, and since the FHA underwrites the loan, banks are more lenient about credit requirements. Buyers in Arkansas still must qualify for the program, and there are limits on the amount of money that can be loaned under the FHA program.
Arkansas FHA Loan Benefits
The 2009 base FHA loan limit for the entire program is $271,050 for a single family dwelling. This base amount is increased based on the cost of living in a certain area so that loans are accessible to buyers despite the high cost of housing. In Arkansas, however, the limit is $271,050 statewide, making it a bit easier to plan your housing budget. The allowance does increase for multi-family dwellings, however, so if you're considering buying a duplex or other multi-family home, you should check with your lender to get the current loan limits for this type of housing.