HELOC Loans in Arkansas
Home Equity Line of Credit (HELOC)
A HELOC (home equity line of credit)
gives Arkansas homeowners a flexible way to access funds using the equity in their homes. Whether you're planning a kitchen renovation in Little Rock or paying off debt in Fayetteville, a HELOC lets you draw funds as needed during a set draw period. This revolving credit line is backed by your property and typically comes with a variable interest rate. Most lenders in Arkansas require at least 15% to 20% equity and a credit score of 620 or higher. Home equity loans, by contrast, provide a fixed-rate lump sum with set payments. Arkansas homeowners can apply through local banks, credit unions, or regional lenders depending on their preferences.
How to qualify
To obtain a quote, we will need the following information:
Property Value and
Purchase Price
Down Payment
Amount
Credit Score
Asset Types
- Single Family Homes
- Townhomes
- Condos
- 2 - 4 Units (Duplex, Triplex, Quadplex)
- Multi-Family: 5 - 8 Units
- Mixed-Use: 2 - 8 Units
- Multi-Family: 9+ Unit
Loan Terms
- Loan Sizes:
$100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
- Purchase LTV:
Up to 85%
- Rate & Term Refinance LTV:
Up to 80%
- Cash Out Refinance LTV:
Up to 80%
- Amortization:
30 Year % 40 Year Amortization Options Available
- Term Lengths:
5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
- Floor Rate:
5.50% (subject to change daily due to market volatility)
- Full Recourse
with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
- DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
- Vesting:
Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
- Average Time to Close:
14 to 35 days
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Frequently Asked Questions
What is a HELOC and how does it differ from a home equity loan?
A HELOC allows you to borrow against the equity in your Arkansas home, offering a revolving credit line that works much like a credit card. In contrast, a home equity loan provides a one-time lump sum, repaid in fixed monthly payments. HELOCs typically have variable interest rates and a draw period of 5 to 10 years, making them ideal for recurring or uncertain expenses. Home equity loans, on the other hand, offer more predictability. The right choice for you depends on whether you prefer flexibility or structured payments.
How do HELOC rates work and what affects the interest rate?
HELOC interest rates in Arkansas are generally tied to the prime rate and adjusted based on your credit score, debt-to-income ratio, and loan-to-value ratio. Most lenders offer variable rates, but fixed-rate options may be available for part of the balance. Rates can vary depending on the lender and your financial profile. Arkansas credit unions often have competitive HELOC rates, especially for long-term members. It's a good idea to compare APRs, introductory offers, and fees from multiple lenders across the state.
Can I qualify for a home equity loan in Arkansas with low credit?
Yes, it’s possible to qualify for a home equity loan in Arkansas with lower credit, though terms may be less favorable. Most lenders look for a score above 620, but borrowers with scores in the 580–620 range may qualify if they have strong equity and consistent income. Local credit unions in Arkansas sometimes offer more flexibility than national banks. Expect to provide full documentation of income and assets. Even with low credit, strong home equity and a stable payment history can improve your approval chances.
How much equity do I need in my home to get a HELOC?
To qualify for a HELOC in Arkansas, you’ll generally need between 15% and 20% equity in your home. Lenders use your home’s appraised value to calculate the total loan amount and determine your available line of credit.You’ll also need to demonstrate your ability to repay the loan, typically through income verification and credit history. In Arkansas, where housing costs are moderate, many homeowners can qualify with a solid equity position and responsible financial profile.
Are home equity loans in Arkansas better for large expenses?
Yes, home equity loans in Arkansas are well-suited for large, one-time expenses such as roof replacements, medical bills, or paying off credit card debt. These loans come with fixed rates and clear repayment terms, making them easy to budget for. A HELOC may be a better fit for ongoing or uncertain costs, such as phased home renovations. The choice between a fixed-rate home equity loan and a variable-rate HELOC depends on your financial goals, borrowing needs, and how much predictability you want in your monthly payments.
What are typical equity rates and loan terms in Arkansas?
In Arkansas, HELOC rates typically range from 7% to 10% APR depending on credit, equity, and the lender. Home equity loans often offer fixed rates over 5- to 30-year terms, while HELOCs usually include a 10-year draw period followed by a 10- to 20-year repayment period. Many Arkansas banks and credit unions offer competitive rates, especially for borrowers with strong credit profiles. To secure the best terms, shop around and request personalized quotes based on your location and loan goals.
