Best Mortgage Lenders for First Time Home Buyers in Arkansas

Are you getting ready to buy your first home in the Natural State? We’ll help you zoom in on the best mortgage lender so you get the best mortgage for your needs.

Quick Look: Best Mortgage Lenders for First Time Home Buyers in AR

• Best for Bank Statement Loans: Angel Oak Mortgage Solutions
• Best for Online Loans: Rocket Mortgage®
• Best for Self-Employed: CrossCountry Mortgage
• Best for Comparing Lenders: loanDepot
• Best for Comparing Rates: Credible Mortgage
• Best for VA Loans: Veterans United

Best Mortgage Lenders in Arkansas for First Time Home Buyers

With numerous options available, finding the right lender can be a daunting task. To simplify the process, this list highlights some of the top mortgage lenders in Arkansas that cater specifically to first-time home buyers.

1. Best for Bank Statement Loans: Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions is a full-service mortgage lender offering traditional and portfolio mortgage loans. Among their many customized loan solutions is their Bank Statement product for self-employed borrowers in New Mexico. This loan does not require tax returns and includes a 1099 Income option for 1099 earners. 

• Loan amounts up to $3 million
• 12 or 24 months personal or business bank statements
• Two years out of bankruptcy, short sale, foreclosure, or deed-in-lieu
• Owner occupied, non-owner occupied, second homes in New Mexico
• 1099 option available
• 40-year fixed interest only
• Delayed financing available
• Non-warrantable condos allowed

Angel Oak Mortgage Solutions offers a wide range of loan options allowing you to obtain any mortgage as long as qualification requirements are met. New Mexico residents can also refinance into any of these loans. The customer service team is easy to reach via email, phone or the online contact form, and you can begin your journey by searching for a local advisor right on the website.

• Loan types offered: Conventional, FHA, USDA and VA
• Credit score requirement: 620
• Average days to close a loan: 20-45 days

2. Best for Online Loans: Rocket Mortgage®

Rocket Mortgage® understands that buying a home for the first time is confusing — so they’ve taken tons of steps to simplify the preapproval process. A product of Quicken Loans®, Rocket Mortgage® allows most users to get preapproved for their loan online in as little as 30 minutes. To get started with Rocket Mortgage®, all you need to do is enter your name, email address and a little income information online.

You’ll then have access to current interest rates, more information on loan types and direction to the next steps in the approval process. Rocket Mortgage® offers a comprehensive set of loans, and you can get an FHA loan with a credit score as low as 500 points if you have a 10% down payment. With plenty of loan products, a simple step-by-step approval process and tons of information for first time buyers, Rocket Mortgage® is our top choice for mortgage lenders. 

• Loan types offered: Conventional, FHA, USDA and VA
• Credit score requirement: 620
• Average days to close a loan: 30-45 days

3. Best for Self-Employed: CrossCountry Mortgage

CrossCountry Mortgage makes it easy for all types of home buyers to get approved for a mortgage. Their flexible requirements can help you get financing, with no employment or income verification and no minimum DTI. CrossCountry Mortgage offers traditional loan terms, as well as more flexible home payment plans with their 40-year loan program.

It's also easier to get approved if you're self-employed. Tax returns are not required and you'll only need one year of self-employment income history and a minimum credit score of 580. CrossCountry Mortgage can also help you get approved on assets alone, like your bank statements, stocks and bonds, or retirement accounts.

• Loan types offered: Conventional, FHA, USDA and VA
• Credit score requirement: 580
• Average days to close a loan: 21

4. Best for Comparing Lenders: loanDepot

loanDepot is a non-bank lender that gives you convenience and efficiency online with the option to visit one or over 200 branches across the country. loanDepot offers fixed-rate and adjustable-rate conventional mortgages. You could also secure jumbo, FHA or VA loans, although conventional loans made up most of LoanDepot’s mortgage originations last year. LoanDepot also offers 10-, 15-, 20- and 30-year mortgage terms. 

In addition to mortgages and home refinancing, LoanDepot offers free credit score monitoring to help you prepare to apply for a mortgage. You'll need at least 5% downpayment. 

• Loan types offered: Conventional, FHA, VA, and Jumbo
• Credit score requirement: 620 (depends on the lender)
• Average days to close a loan: 30 days (depends on the lender)

5. Best for Comparing Rates: Credible Mortgage

Unlike individual mortgage lenders, Credible is a lender marketplace that allows you to compare multiple lenders. You'll enter basic financial information and get quotes from several lenders on standard home mortgage products. Credible offers a free, fully online mortgage broker service that lets you get quotes from online lenders. It offers straightforward, convenient service with the possibility of finding the lowest interest rates.

• Loan types offered: Conventional, FHA, VA USDA and Jumbo
• Credit score requirement: 620 (depends on the lender)
• Average days to close a loan: 30 - 45 (depends on the lender)

6. Best for VA Loans: Veterans United

If you’ve logged some time in the military, Veterans United’s loans will likely be the best deal. Unlike other veteran-marketed loan programs, Veterans United only accepts active duty and veteran military members.

In addition to no-down-payment loans, you’ll also eliminate the private mortgage insurance you’ll have to pay with other mortgages.

Veterans United is also more forgiving of lower credit scores. Interest rates are lower than average.

• Loan types offered: VA, USDA, FHA and Jumbo
• Minimum credit score: 620
• Average days to close a loan: 30

The Housing Market in Arkansas: An Overview

It’s important to take a look at your local housing market before you choose a mortgage lender. Understanding your local market can give you a better idea of what to expect when you finance your home. Here are a few Arkansas facts: 

Total households: 1,171,694

Median list price: $203,305

3 most expensive cities in Arkansas to buy a house:

• Goshen: $662,821
• Elm Springs: $550,221
• Cave Springs:  $504,235

3 most affordable cities in Arkansas to buy a house:

• Helena-West Helena: $38,908
• Forrest City: $61,634
• Blytheville: $69,811

Understanding the median home values throughout Arkansas will help you better prepare for typical listing prices in the Natural State.

Preparing for a Mortgage

You’ll need to know a few key pieces of information before you get started. We’ll walk you through the application process and help you pick up some important insights along the way.

The home loan preparation process is the same whether you’re a new or existing homeowner. Take a look at your financial situation so you know where you stand before you look for a lender. You should:

• Know how much of a down payment you can bring to the table. Most mortgage types and lenders have down payment requirements, so it’s good to know how much you can afford to put down on your home before you apply. A higher down payment usually helps you lock in a better mortgage or interest rate, which can save you money throughout the lifetime of your loan.
• Know your latest credit score. Lenders look at your credit score and credit history when they approve you for a mortgage. Your credit score also determines your mortgage rate. Different lenders have different credit score requirements. Typically, the higher your score, the lower your mortgage rate will be.

Next, you’ll want to prepare all of the paperwork you’ll need to begin the application process. Doing this can save time during the home loan process. Here’s what you’ll need to prepare before you apply.

• Your Social Security number
• Tax information from the past 2 years
• Pay stubs from the past 2 months
• The total amount of money you have in your accounts (checking, savings, retirement and other investment accounts)

Additional paperwork could be required, depending on the lender you choose.

Mortgage Options

First time home buyers should understand the different types of mortgage options available. We’ll walk you through the 5 top mortgage types available for Arkansas homebuyers. 

Conventional Loan

Conventional loans are funded through financial institutions like banks and credit unions. They often have higher interest rates and aren’t backed by the federal government. It’s often easier to qualify for conventional loans since they have more flexible eligibility requirements.

FHA Loan

FHA loans, designed for first time homebuyers, are funded through the Federal Housing Administration. FHA loans offer lower-than-market mortgage rates, have low down payment minimums (3.5%) and low credit score requirements (starting at 580). Most conventional lenders offer FHA loans.

USDA Loan

The U.S. Department of Agriculture funds USDA loans for any home purchased in a rural area (outside of a major city) in Arkansas. USDA loans offer lower-than-market interest rates, no down payment options and low credit score requirements (starting at 640). Many major lenders conventional lenders also offer USDA loans.

VA Loan

The Department of Veteran Affairs offers VA loans for current or former military members and their families. VA loans offer lower-than-market interest rates, no down payment options and have no credit score requirements, except when specified by a lender. Many major conventional lenders and VA-only lenders provide VA loans.

Jumbo Loan

Jumbo loans finance homes over $484,350 (this limit could be higher depending on your location). Jumbo loans are conventional or FHA loans that often have higher credit score requirements and larger down payment minimums. Most lenders expect 20% down payments for jumbo loans but online lenders like Quicken Loans® only require 10%.

First Time Home Buyer Programs in Arkansas

The Arkansas Development Finance Authority (ADFA) offers a variety of programs designed to help first time homebuyers afford a first home. These grants and assistance programs can typically be used with most mortgage types, like FHA loans.

ADFA Down Payment Assistance Program

This down payment assistance program (DPA) can provide up to $10,000 in down payment and closing cost aid. The DPA works as a second mortgage and allows you to take out another home loan for a down payment.

ADFA Down Payment Initiative (ADDI)

ADDI allows lower-income Arkansas residents to finance a down payment (up to $10,000) through an assistance loan with no monthly payment requirements. This is forgiven after 10 years. You must meet income requirements to qualify and you’re responsible for the full loan if you move before the 5-year grace period ends.

ADFA Move Up Loan Program

This first time homebuyer mortgage offers low rates for qualifying Arkansas residents. This loan program is offered by conventional, FHA, USDA and VA lenders and can be combined with either down payment program.

Current Mortgage Rates in Arkansas

Your mortgage rate is the interest rate you’ll pay throughout the duration of your home loan. Securing a lower mortgage rate will save you thousands on your home loan over time.

Your lender uses a few different factors to determine your mortgage rate: your credit score, your down payment amount, your home location and your mortgage type and term.

There are 2 main types of mortgage terms to choose from: fixed and adjustable. Fixed mortgages have a set amount you pay each month over a specified term (or the length of your mortgage). Adjustable mortgages (ARMs) may have a set amount paid during an introductory period. Afterward, your rate fluctuates with the market and you will pay a different amount each month.

Mortgage rates in the Natural State can vary across cities, depending on the health of the local market. We’ve compiled the most up-to-date information on Arizona mortgage rates so you can look at approximate rates based on mortgage terms. 

Closing a Mortgage

Closing is the final step in the mortgage process. At this stage, you’ll sign all documents, review your information and confirm the terms of your home loan. Your down payment and closing costs will also be due at this time.

You’ll typically walk through your home to verify it’s in the agreed-upon condition during closing. You’ll also meet with your real estate agent to finalize all of your financial paperwork. You’ll receive the keys to your new home once all documents are signed and funds are paid.

The closing process takes between 30–45 days, though it can vary by lender. Online lenders like Quicken Loans® can condense this timeframe, thanks to faster approvals and verifications.

Here are typical closing day expectations based on top lenders in Arkansas.

Get Ready to Buy Your First Home in Arkansas

Take your time as you search for the best lender for your financial situation. Locking in a low rate can save you money in the long run but finding a lender that can offer you what you need most is even more important.

Frequently Asked Questions