Home Selling in 71909>Question Details

Danodle, Home Seller in 71909

I am in Ark and selling my home to an individual. I will finance the loan. What is the limit of interest that can be charged? Is 6% legal?

Asked by Danodle, 71909 Tue Aug 30, 2011

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4
6% is perfectly legal. You will need an attorney to assist you in putting together the formal paperwork.
0 votes Thank Flag Link Fri Oct 12, 2012
the usery law has been lifted last year and ....you can charge up to 16%, but call your attorney....I called Eudox Patterson
0 votes Thank Flag Link Fri Oct 12, 2012
I had a legal mortgage I paid off which was 10%. Arkansas usuary law is 10%, but some places can charge higher, in fact the government charged more for loans in the 80's.

I'd also recommend having a 3rd party take the payments in and process the loan balance every month. It costs the buyer a few dollars per month, but protects both of you from having any discrepancies.
0 votes Thank Flag Link Tue Aug 30, 2011
Check with a lawyer. Or call your state's attorney general's office or the state's consumer affairs department. I'm not a lawyer, so this isn't legal advice. However, I'm 99.9% confident that 6% is legal. The limit likely is far higher. For instance, see http://www.usurylaw.com/state/arkansas.php

But check with someone in Arkansas who would know for sure.

Hope that helps.
0 votes Thank Flag Link Tue Aug 30, 2011
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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