Updated: November 16, 2024
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The best home equity line of credit (HELOC) lender in Arkansas is INTRUST Bank with a MoneyGeek score of 94 out of 100. Regions Bank is the runner-up, scoring 94 out of 100.
The average HELOC limit in Arkansas is $78,161. How much you can borrow often depends on factors like your home's equity, mortgage balance and credit score.
Comparing rates can help you find lenders that meet your needs. MoneyGeek compiled the best HELOC rates in Arkansas, updated weekly to assist you.
The average HELOC balance in Arkansas for the third quarter of 2023 was $37,016, according to Experian. Calculating your HELOC payments is critical to managing this type of debt effectively. It helps you plan for adjustments in your financial obligations.
Use our HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR and loan terms. The full amortization schedule shows how much your payments go toward interest and principal over time.
This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.
Draw Period Payment
Repayment Period Payment
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Home equity lines of credit (HELOCs) are popular among Arkansas homeowners due to their flexibility and control over borrowing amounts and repayment timelines. Here's a look at where you can use a HELOC to maximize its benefits.
Home Improvements or Renovations
A HELOC is perfect for home improvements, offering flexibility as costs change. It allows you to enhance your property without finalizing expenses upfront, making it a smart choice for dynamic renovation projects.
Consolidating High-Interest Debt
The average 2023 consumer debt in Arkansas was $74,770. Using a HELOC for debt consolidation can simplify payments by merging multiple debts into one, potentially lowering interest rates.
Funding Education
Using a HELOC for education expenses can be a smart choice. It can cover tuition, books and fees with potentially lower interest rates.
Investment Properties
A HELOC can fund investment properties, providing capital for growth. Shop around for the best HELOC lenders for investment property to secure favorable rates and terms and maximize your investment potential.
Understanding the steps to apply for a HELOC in Arkansas is key to making informed financial decisions. We've outlined this process in six steps below.
Check your credit score, which affects your approval chances. The average credit score in Arkansas is 696, based on Experian data for the third quarter of 2023. A higher score may improve your approval odds. Also, review your debt-to-income ratio and home equity to gauge your financial health and readiness for a HELOC.
Comparing rates from different lenders can help you secure the best HELOC deal. Also, consider other features such as repayment terms, fees and the option to apply for a fixed-rate HELOC to ensure you choose a lender that aligns with your financial needs and goals.
Preparing the necessary documents in advance can streamline your HELOC application process. Commonly required documents include proof of income, recent tax returns and mortgage and home value information.
When you're ready to apply for a HELOC, most lenders offer the convenience of online applications. If your lender has a physical branch, you can also apply in person. Ensure all information is accurate and complete to avoid errors or omissions that could delay the process.
Some lenders may require an appraisal to assess your property's current market value. An appraisal involves a professional evaluation of your home's worth, helping the lender determine the loan amount you qualify for.
The approval process for a HELOC can take anywhere from two to six weeks. Once approved, you'll proceed to the closing process, which involves signing documents and potentially paying closing costs. Some lenders may offer to cover part of these costs, so it's worth inquiring about any available options.
The average HELOC limit in Arkansas was $78,161 for the third quarter of 2023, according to Experian. The maximum amount you can borrow with a HELOC is usually tied to the equity you have in your home. Higher equity typically means a higher potential credit limit.
Check out the table below for the range of credit lines offered by Arkansas lenders in our database.
| Great Southern Bank | From $6,000 |
| INTRUST Bank | From $5,000 |
| Regions Bank | $10,000 to $500,000 |
As with any line of credit, the lender can increase or decrease the limit at any time for any reason. With a HELOC, if the value of your home drops significantly, the lender can choose to decrease your line or even freeze it, making it unusable until you pay it down to the amount that aligns with their guidelines.
INTRUST Bank is the best HELOC lender in Arkansas, with a MoneyGeek score of 94 out of 100. It excels in customer service and education, offers competitive interest rates and is credible and transparent about its terms and process.
When looking for the best HELOC lenders for bad credit, consider lenders that offer flexible credit requirements, competitive interest rates and favorable terms for those with lower credit scores.
Consider interest rates, fees, borrowing limits, repayment terms and lender reputation when choosing a HELOC lender.
Common fees to compare include origination fees, annual fees, application fees and early closure fees.
The typical draw period for HELOCs is 10 years, but some lenders may offer more flexible options.
Look for lenders that offer fixed-rate HELOC options or allow interest-only payments during the draw period.
MoneyGeek's scoring system offers a comprehensive overview of how each lender performed in areas that matter most to borrowers. We allocated scores based on the inclusion or exclusion of certain desirable features in various critical categories.
We completed our analysis in October 2024 and considered different banks and credit unions in Arkansas from S&P Global's SNL Depository Rates dataset.
About Zachary Romeo, CBCA
Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.
Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.
