Fayetteville's housing market has quietly become one of the South's most consistent wealth-builders. Over the past decade, median sale prices have climbed 6.2 percent annually—double the national average—yet the cost-of-living index remains 14 percent below the U.S. median. Translation: homeowners gain equity faster while still enjoying $4 craft night on Dickson Street.

Key Metrics for 2024:

• Median Sale Price: $290,000 (up 5.8 percent year-over-year)
• Average Days on Market: 18 days county-wide; 9 days for homes under $275,000
• List-to-Sale Ratio: 99.1 percent (sellers rarely negotiate more than 1 percent off asking)
• Price per Square Foot: $148 inside city limits; $122 in outlying Washington County

Inventory is tightest between $200,000 and $300,000, where first-time buyers compete with investors targeting University rentals. Builders have responded—permits for single-family homes rose 22 percent last year—but supply-chain delays push most delivery dates past nine months. That dynamic keeps resale prices climbing and rewards buyers who can move quickly with firm financing.

Each quadrant of Fayetteville tells a different story, and understanding those nuances helps you target the right mortgage product.

Wilson Park / Downtown Square: Mature trees, Craftsman bungalows, and a 10-minute walk to the farmers' market. Prices start around $350,000; most buyers use conventional 20-percent-down loans to compete. Renovation loans (FHA 203k or conventional Homestyle) work well here because many properties still have galvanized plumbing.

Gulley Park / Mission Boulevard: Family-central. Homes built between 1990 and 2010 sit on quarter-acre lots zoned for top-tier schools like Holcomb Elementary. Values run $275,000–$425,000. USDA loans map just minutes east, so zero-down options are plentiful if you're willing to cross the county line into Elkins or White Rock.

Crossover / Highway 412: The newest retail corridor. You'll find 2020-built subdivisions with granite counters and fenced yards priced $250,000–$300,000. First-time buyer FHA financing dominates, and sellers often cover up to 3 percent of closing costs—perfect if you're stretching every dollar.

Clabber Creek / South Fayetteville: Quiet, semi-rural feel but still 12 minutes to the U of A. Expect acreage, barns, and prices from $350,000 to $700,000. Jumbo loans become common, but NMHL keeps them in-house, so approval stays local and fast.

A common myth is that you need 20 percent down to buy in Fayetteville. In reality, the average NMHL client last year brought $7,800 to closing on a $285,000 purchase—less than 3 percent. Here's how we combine local and statewide programs to shrink your cash requirement.

Arkansas Development Finance Authority (ADFA):

• ADFA Move-Up: 30-year fixed rate typically 0.25–0.375 percent below market; no first-time-buyer requirement.
• ADFA Down-Payment Assistance: $7,500 to $10,000 forgivable after five years; household income under $73,600 for a family of four in Washington County.
• ADFA Dream Makers: Adds $2,000 more for educators, firefighters, and law-enforcement officers.

Washington County Specific: The Jump-Start grant provides a 0 percent deferred loan up to $5,000 for buyers who certify they will work within county limits for three years. NMHL processes the county paperwork during your loan underwriting, so no second lien closing delays.

NMHL Layered Solutions: Combine ADFA assistance with our 1 Percent Down program and you can purchase a $300,000 home with roughly $3,000 from your own funds. We even credit up to $795 of your appraisal cost at closing if you attend our free online Home-Buyer 101 class.

Arkansas's property-tax climate is one of the nation's friendliest, but buyers still get surprised at closing. Here's what to expect.

Property-Tax Rate: Washington County assesses residential real estate at 20 percent of appraised value, then applies a millage totaling about 60 mills. On a $290,000 home, expect annual taxes near $1,740—roughly $145 per month. Taxes are paid in arrears, so you'll receive a credit from the seller for the months they occupied the property.

Homestead Credit: File the paperwork before December 31 of your purchase year and knock $375 off your annual bill forever. It's a simple one-page form NMHL sends you at closing.

Insurance: Premiums average $1,350 annually, but hail and tornado risk push some south-county ZIPs past $1,800. If your quote looks high, ask us about the NMHL Insurance Marketplace—we shop among eight carriers and can often shave $300–$500 off the year-one premium, freeing up debt-to-income room.

Flood Zones: Fayetteville's steep terrain keeps most properties out of the 100-year floodplain, but Garden Club Lane and parts of Clabber Creek require flood insurance—budget an extra $450–$700 yearly. We pull FEMA maps during pre-approval so no surprises surface a week before closing.

With 12,000 veterans living in Washington County and the National Guard Armory on College Avenue, Fayetteville is a proud military community. Yet only 38 percent of eligible veterans here use their VA home-loan benefit—mostly because they don't know how powerful it is.

Zero-Down Financing: Purchase up to county loan limit ($766,550 in 2024) with no down payment. On a $290,000 home, that's $58,000 of cash you keep in your pocket compared to a conventional 20-percent-down buyer.

Competitive Edge: VA appraisals in Northwest Arkansas average 12 days—same as conventional—and sellers gain confidence knowing the buyer isn't scraping together a 5 percent down payment that might fall through.

Credit Flexibility: We regularly approve VA loans with 580 middle scores, provided residual income meets the regional benchmark. Even if you've had a short sale or foreclosure, only a two-year seasoning period is required.

NMLS-Exempt Funding Fee Waiver: Veterans with a 10 percent or greater service-connected disability pay no funding fee, saving $5,800 on a $290,000 purchase. NMHL partners with the local VA office to expedite disability-rating letters so you can close fee-free.

Maybe medical bills from a motorcycle accident on Highway 71 tanked your score, or a divorce left late payments on your report. Whatever the story, NMHL believes past credit hiccups shouldn't bar you from owning a slice of Northwest Arkansas.

FHA with 580–619 Score: 3.5 percent down and rates only 0.25–0.375 percent above prime. We recently closed a $245,000 house in the Crossover corridor for a buyer whose mid-score was 587; monthly payment including MIP: $1,980.

Manual Underwrite FHA: If your automated underwriting engine returns a Refer, our in-house underwriters still approve using compensating factors like low payment shock or 12 months of rental history. We accept 12-month bank-statement utility bills as alternative credit.

Non-QM Bank-Statement Loan: For self-employed borrowers with scores below 620, we average 24 months of deposits and lend up to 85 percent of the home's value. Rates start at 7.25 percent, but you can refinance into a conventional loan after a 12-month clean payment history.

Fresh-Start Credit Coach: Enroll at application; our credit analysts run rapid re-scoring simulators. Typical improvements: 28 points in 21 days by paying down two revolving cards below 30 percent utilization. Faster approval, better rate, stronger offer.