Arkansas attracts buyers nationwide with its affordable housing, scenic landscapes, and friendly communities. With plenty of homes for sale in Arkansas, you have options. But buying a house here can be challenging. You must get preapproved, check neighborhoods, and attend open houses.
With Houzeo, Arkansas’ best home buying website, managing your home search is simple. You can look through the latest listings in Arkansas, save your favorites, schedule showings, and submit offers, all at your fingertips.
👉 Download the Houzeo mobile app to simplify your Arkansas home search.
At a Glance:
- Determine whether you’re purchasing a primary home, a vacation getaway, or a rental property, and choose Arkansas cities that match your goals.
- Set aside 30–45 days for mortgage pre-approval. Aim for a credit score of 620+ to stay competitive in Arkansas’ fast-moving market.
- Explore FHA, VA, or USDA loans, and apply for ADFA programs like the Arkansas Dream Down Payment Initiative.
- Use platforms like Houzeo to search Arkansas homes by city, price, or must-have features like acreage, access to lakes, or land features.
- Standard inspections apply, plus Arkansas-specific checks for termite damage, foundation settling, and flood risk near rivers or delta regions.
- Expect 2%–5% in closing costs. After purchase, file for Arkansas Homestead Tax Credit to reduce your property taxes in Arkansas.
7 Steps for Buying a Home in Arkansas🏞️
Buying a home in Arkansas doesn’t have to be complicated. Whether you’re just starting your search or are already browsing homes for sale in Little Rock or any other cities, these 7 simple steps will help you move forward with confidence:
Step 1: Decide Your Homebuying Purpose
Whether you’re looking for a getaway or seeking an investment, knowing why you’re buying real estate in Arkansas is essential. It sets your expectations and helps you make smarter choices. Here’s what you should keep in mind:
- Primary Residence vs. Investment: If you want to buy a home, choose places that fit your lifestyle, whether it’s a city like Little Rock or a suburb like Bentonville. For investment properties, consider homes for sale in Hot Springs, where tourism drives demand.
- Short-Term or Long-Term: If you plan to live in the house for only a few years, focus on neighborhoods with strong resale value and upward market trends. You can check out homes for sale in Fayetteville or Rogers, where the housing market continues to grow.
- Space Requirements: If you’re looking for larger lots or big backyards, consider suburban areas like Cabot. But if you prefer something easier to manage, condos in places like downtown Little Rock or Fayetteville can be a smart option. However, they often have smaller lots.
Calculate the cost of living in Arkansas to get a detailed breakdown of expenses like housing, utilities, transportation, and more. 🏡
Step 2: Explore Financing Options
Before making a purchase, it’s important to understand the financing options available for you to make an informed decision. Here’s what you need to do:
1. Prepare Financially
- Check Your Credit Score: Lenders will check your credit score to determine if you’re eligible for a loan. Aim for a score of 500+ for an FHA loan and 620+ for a conventional loan.
- Calculate Your Debt-to-Income (DTI) Ratio: Lenders often use your DTI ratio to assess how much home you can afford. Keep your DTI below 36%, especially if you want a home in an expensive region like Bentonville or Fayetteville.
- Set Your Budget: Ensure your budget includes property taxes, homeowners’ insurance, and potential flood insurance. This is particularly in eastern Arkansas near the Mississippi River or low-lying areas prone to flooding.
👉 Use an Arkansas mortgage calculator to estimate how much property you can afford in the Natural State.
2. Explore Loans and Assistance Programs
Down payments in Arkansas usually range between 10% and 20%, but often vary based on the financing option you choose. You can also look for suitable Down Payment Assistance Programs (DPAs) to help you cover part or all of your down payment.
| Program | Description |
| FHA Loans | Require just 3.5% down and are ideal if you’re a first time home buyer in Arkansas. |
| VA & USDA Loans | Offer 0% down with lower interest rates. Perfect for veterans or those purchasing homes in rural areas. |
| ADFA Down Payment Assistance Program | Offered through the Arkansas Development Finance Authority, this program provides up to $15,000 in assistance for eligible buyers using an ADFA mortgage. |
| ADFA Move-Up Program | Helps qualified homebuyers access affordable mortgage financing and down payment aid when purchasing a primary residence in Arkansas. |
| Arkansas Dream Down Payment Initiative (ADDI) | Assists low- to moderate-income buyers with funds for down payment and closing costs, making homeownership more accessible statewide. |
Step 3: Get Pre-Approved for a Mortgage
The Arkansas housing market is competitive, so get a mortgage pre-approval to show sellers you’re a serious buyer. In fact, 86% of sellers prefer buyers who are pre-approved. It also helps you negotiate better, and reduces delays in the transaction.
Shop around to find the best Arkansas mortgage lenders—compare their programs, rates and terms. Once you’ve narrowed down your options, get pre-approved by submitting documents like proof of income, credit history, bank statements, and your ID proof.
Step 4: Dive Into the Arkansas Market
Whether you’re looking at houses for sale in Conway or anywhere else in the Natural State, here’s how to buy smart:
- Online Listings: If you’re wondering how to buy a house, starting with online listings is a good first step. Use platforms like Houzeo to search homes for sale by price, zip code, and more. You can also filter for must-haves like a backyard, waterfront view, etc.
- FSBO (For Sale By Owner) Homes: Explore FSBO listings, as they often offer more flexibility in price negotiations. This is because sellers aren’t paying 5% to 6% in agent fees.
Helena-West Helena is the nicest and cheapest place to live in Arkansas. The number of homes for sale in Helena-West Helena is on the rise, thanks to its safe neighborhoods and diverse job opportunities.
Step 5: Make a Competitive Offer
In Arkansas’ competitive housing market, homes tend to sell fast. Make sure you focus on real estate comps for a more accurate picture. Here’s a checklist to help you craft a strong offer:
- Seller’s Name and Address: Don’t forget the basics—include the seller’s legal name and property address.
- Price and Terms: Offer a price based on Fair Market Value (FMV) and comparable sales. In high-demand areas like Fayetteville or Little Rock, you might need to offer above the asking price to stand out.
- Down Payment: In Arkansas, down payments usually range from 3% to 20%. In competitive markets like Northwest Arkansas, a larger down payment can strengthen your offer.
- Earnest Money: Boost your earnest money deposit to show you’re serious, especially in hotspots like Rogers, Springdale, or Conway, where homes can go fast.
- Contingencies: Include protections like home inspection, financing, and wind mitigation contingencies. These safeguard you from issues like hurricane damage.
- Concessions: Request the seller to cover some closing costs. In Arkansas, it’s common to negotiate repairs after the inspection, such as roof issues, HVAC problems, or plumbing leaks.
- Deadline for Seller’s Response: Set a 24- to 72-hour deadline to encourage a prompt reply. This helps prevent delays and keeps you on track for Arkansas’ average 44-day closing timeline.
- Closing Costs: Expect closing costs around 2% to 5% of the home’s price, including title insurance, property taxes, and lender fees.
Step 6: Conduct Inspections and Appraisals
A standard home inspection in Arkansas should cover:
- HVAC System: Ensure the air conditioning can handle Arkansas’ heat and winters. It is essential for year-round comfort.
- Plumbing: Check for leaks, corrosion, and water pressure issues, especially in Arkansas homes built before the 1980s. Aging pipes and high humidity can lead to moisture damage or mold if not maintained properly.
- Electrical System: Verify everything is up to code and can withstand storm-related power surges, which are common in Arkansas.
- Roof Condition: Assess for storm damage, missing shingles, or age-related wear. Given Arkansas’ exposure to tornadoes and strong thunderstorms, a solid, well-maintained roof is crucial.
- Foundation and Structure: Look for cracks, moisture, or settlement issues, particularly in flood-prone or sandy-soil areas.
If you’re browsing homes for sale in Arkansas or elsewhere, ensure that you get a wind mitigation inspection for hurricane risk. Also, if you have a condo over 30 years old and higher than two stories, make sure you get a Milestone Inspection for structural safety.
Once the inspection is complete, your lender will order a home appraisal to confirm the property’s market value. This step ensures the loan amount aligns with what the home is actually worth. It can impact final loan approval, especially if the appraisal comes in low.
Step 7: Close on Your Arkansas Home
Almost there! Closing usually takes 30–45 days, from signing the contract to getting the keys in your hand. Here’s what you can expect:
- Final Walkthrough: Make sure all repairs have been completed, and the home is in the agreed-upon condition.
- Buyer Closing Costs: Expect to pay 2%–5% of the home price. This includes title fees and lender charges, plus prepaid taxes or insurance.
Once you sign the dotted line and transfer the escrow—congratulations, you’re officially a homeowner. Grab those keys and cue your happy dance! 🎉
What Should You Do After Closing?
Welcome home! Now it’s time to handle a few must-dos to protect your investment:
- File for Homestead Exemption: If the home is your primary residence, apply for Arkansas’ Homestead Property Tax Credit to reduce your property taxes.
- Set Up Utilities: Get water, electric, internet, and trash service connected, often through Entergy Arkansas or Central Arkansas Water. And don’t forget pest control, especially in humid areas like Little Rock or Hot Springs, where bugs are active year-round.
- Get Insurance: Homeowners insurance is required if you’re financing, and flood insurance may be needed in FEMA zones. Rates can vary depending on storm and flood risk.
- Home Maintenance Plan: Schedule AC tune-ups at least twice a year, clear gutters regularly, and inspect roofs for storm damage or algae buildup. Consider wind mitigation upgrades to reduce insurance costs.
How to Buy a House in Arkansas Without a Realtor?
Start by researching neighborhoods and browsing listings on trusted sites like Houzeo. Then, schedule showings directly with sellers or their agents. You can also hire a real estate attorney to review contracts and handle legal details.
Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.
Should You Buy a House in Arkansas?
Absolutely! Arkansas offers incredible opportunities for homeowners, whether you’re buying for investment, residence, or vacation. Moreover, with more homes being sold below the list price, now’s the best time to buy a house in Arkansas.
Whether you’re drawn to Little Rock’s vibrant city life or Fayetteville’s college-town energy, Arkansas has it all. There’s a spot to match every lifestyle and budget. So if you’re on the hunt, check out our list of the best places to live in Arkansas!
