Unfortunately, there are many things that can bring down property value. It helps to categorize these items into as follows: 

 

1. Property-centric
2. Market-centric

 

## Property-centric home value destroyers

 

Property-centric items that bring down your home's value are much more in your control than market-centric items, so it's important to make sure you are alert and maintain your property proactively before small issues become big, expensive problems.

 

## Roof leaks, water intrusion, foundation issues

 

Roof leaks that go unaddressed can cause major property damage (water damage, mold growth) that can quickly destroy the value of your home. Foundation issues that result in water intrusion or structural instability can be very costly and hazardous. Other items that result in water intrusion and biological growth (mold) include separated siding, unsealed entryways and windows.

## Pest infestation

 

Termite damage bed bugs can require substantial and expensive remediation. Rodent infestation can cause structural damage due to chewing through hard to access places. Rodents can also cause electrical wiring damage. 

 

Thus, [mice removal](https://www.peststrategies.com/pest-guides/rat-and-mouse-guides/mice-removal/) is essential to protecting your home.

 

It's important to be proactive to address pest concerns. If you are managing a rental property, remind your tenants every month that they are required to communicate and maintenance and pest related concerns proactively.

 

## Tenants with poor hygiene

 

As you might imagine, poor hygiene can cause pest infestation, foul odors and other issues that can bring down the value of your property.

 

## Tenants who damage or neglect the property

 

If you lease your house to people who break things or don't report maintenance issues, you can expect costly repairs that you may be left on the hook for.

 

## Delinquent tenants

 

It may be costly and time consuming to evict delinquent tenants. These are commonly the same people who damage or neglect the property. That's why it is so important to thoroughly screen prospective tenants.

 

The list goes on, and the message should be clear: *an ounce of prevention is worth a pound of cure.*

 

## Market-centric home value destroyers

 

Market-centric factors can be much harder to control for and avoid.

 

## Economic downturn

 

Whether local to your community or city, or nationwide (i.e. 2008 financial crisis), economies can experience short term shocks and longer-term structural issues which will be discussed below. When this happens, the price people are able and willing to pay for your house may be less than in the recent past.

## Rising interest rates

 

When interest rates increase, the interest payments for new mortgages goes up. Buyers can't afford the same purchase price range as when interest rates and their associated monthly payments are lower. As a general rule of thumb, rising interest rates will cause home prices to decline.

 

## Population decline

 

Related to the concept of economic downturn, when a local market experiences a declining population, it means there will likely be an imbalance of the supply of houses relative to the demand for houses. Housing demand and home prices may further decline, as many buyers become hesitant to purchase houses in markets where the proverbial bottom is unknown.

 

## High property taxes

 

High taxes can lead businesses and residents to relocate elsewhere, resulting in lower demand for housing inventory.

 

## High crime rate

 

Crime is directly correlated with property values. When crime goes up, people put their houses up for sale, high supply and low demand means property values go down.

 

## Poor governance

 

Corruption and unreliable city services can make would-be homebuyers look elsewhere. Lower demand for your house means a lower price.

 

## Low quality public schools

 

Many parents and guardians of children approaching or in the K-12 age range are sensitive to the quality of public schools. If your home is in a school district that is experiencing a decline in rankings, there will be lower demand for your home -- lower demand means lower property value.

 

As with property-centric home value destroyers, the list of market-centric home value destroyers continues on and is closely inter-connected. 

 

Before buying a house, understand the property and market-based factors that can bring down property value and do your research!

Things that lower property value fall into property-based and area-based categories. Learn more at OfferMarket.

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What brings down property value? - OfferMarket FAQs

What brings down property value?

## Are you able to lend on rural properties?

 

We can't lend on rural properties. How can I find out, if my property is rural? Here are more detail on how to verify if your property is rural in our [Rural Designation Search Tools](https://www.offermarket.us/blog/rural-designation-search-tools). The 2 search tools are hosted by USDA Rural Development Property Eligibility and CFPB Rural and Underserved Areas Checker. Both of the tools must flag the property as none rural for it to be eligible for our funding. Use these instruction to find out [if your property is considered rural](https://www.offermarket.us/blog/rural-designation-search-tools)

 

## What areas do you do serve in Arkansas? 

 

We work with all properties in Kentucky that have a non-rural designation. Use this [rural designation search tool](https://www.offermarket.us/blog/rural-designation-search-tools) to see if your property is considered rural.

 

## What areas in Arkansas are booming? 

 

Arkansas's rental market is experiencing steady growth due to a combination of factors, including affordable cost of living compared to national averages, moderate job growth in sectors like healthcare and construction projected over the next 5 years, and limited housing supply putting upward pressure on rents, particularly for single-family homes.

 

1. Northwest Arkansas (Fayetteville/Springdale/Rogers):

 

The Northwest Arkansas region, including Fayetteville, Springdale, and Rogers, is experiencing moderate population growth, with an estimated 20,000 new residents expected in the next 5 years, driven by major employers like Walmart headquarters and the University of Arkansas.

 

- 72701 (Fayetteville): Home to the University of Arkansas, creating high demand for rentals near campus. Major employers include the University and Walmart. Rents could potentially increase by 3-5% annually.
- 72764 (Springdale): Industrial center with Tyson Foods headquarters and other manufacturing facilities. Rents could potentially increase by 2-4% annually due to steady job growth.
- 72756 (Rogers): Growing suburban area with a mix of families and young professionals. Major employers include Walmart and retail/service businesses. Rents could potentially increase by 2-4% annually due to steady demand.

 

2. Central Arkansas (Little Rock/North Little Rock):

 

Central Arkansas, including Little Rock and North Little Rock, is experiencing slow but steady population growth, with an estimated 10,000 new residents expected in the next 5 years. Major economic drivers include state government, healthcare (UAMS Medical Center), and finance sectors.

 

- 72201 (Downtown Little Rock): Revitalized downtown area with a growing entertainment district and job opportunities. Major employers include UAMS, banks, and state government. Rents could potentially increase by 2-4% annually as demand rises from young professionals.
- 72207 (Chenal): Upscale suburban area with excellent schools. Major employers nearby include healthcare facilities and corporate offices. Rents could potentially remain stable or increase slightly by 1-2% annually due to limited availability.
- 72118 (North Little Rock): Family-friendly area with a growing population. Major employers include manufacturing facilities and retail/service businesses. Rents could potentially increase by 2-4% annually due to steady demand.

 

3. Fort Smith:

 

Fort Smith is experiencing moderate population growth, with an estimated 5,000 new residents expected in the next 5 years. Major economic drivers include manufacturing (aerospace and automotive industries) and healthcare (Mercy Fort Smith).

 

- 72901 (Downtown Fort Smith): Undergoing revitalization with new developments. Major employers include Mercy Fort Smith hospital and manufacturing companies. Rents could potentially increase by 2-4% annually as demand rises.
- 72903 (Greenwood): Suburban area with excellent schools and proximity to major employers. Rents could potentially increase by 2-3% annually due to steady demand from families.
- 72916 (Barling): Growing suburban area with a mix of young professionals and families. Major employers include manufacturing facilities and retail/service businesses. Rents could potentially increase by 2-4% annually due to steady demand.

 

## How do DSCR loans work in Arkansas?

 

The overall process of getting a DSCR Loan in Arkansas is approximately as follows. You submit an application for a loan (you can get started on your loan with an [instant quote](https://www.offermarket.us/loan)) answering 14 questions about your property. An instant quote will tell you if you qualify for the loan in under 1 minute of your time. It will also show you the a preliminary interest rate and loan amount. Once you select desired LTV (which can be changed later), your quote will be converted to a Loan File for processing purposes.

 

You will have to submit documents as part of your Loan File for underwriting. Documents we may ask for will include personal and property documents such as purchase contracts, current leases, borrowing entity documents, deeds, title work (we will engage a title company or an attorney on your behalf to draw up these documents), background and credit reports (that we will order), bank statements for liquidity verification as well as other documents that may be applicable to your specific deal. Full list of requirements can be found here in [DSCR loan requirements](https://www.offermarket.us/blog/dscr-loan-requirements).

 

We will also handle all the aspects of scheduling and appraisal for you. Please note that we have a promotion, where new clients receive a 100% refund at closing for their appraisal and existing clients forever get a 50% refund for their appraisal at closing as our way to say thank you for allowing us to partner with you! Once all the loan documents are submitted, the Loan File goes through underwriting, at which point the underwriting committee may ask for additional documents depending on their discretion. Once the committee receives all the documents and approves the file, closing can be scheduled.

 

The closing, will be handled by the title company or at the office of closing attorney. Once closing is complete, funds will be wired. Post closing, the loan will be entered into servicing and you will receive information regarding setting up auto-pay or other options that may be available for your loan depending on the specific servicer's capabilities.

 

## Can you lend on properties worth less then $100k?

 

In short, no, appraisal as is value must come in at above 100k. We can only lend on properties that are less then $100k if they are in a portfolio with other properties and the portfolio's total as-is value on the appraisal is above $250k. In order to qualify for our loans, the property must appraise for at least $100k as-is at the time of the appraisal, however, total loan amount may be less then 100k, minimum loan amount is $55k.

 

## Do you do cash out refi no seasoning for Arkansas loans?

 

We do offer refinance options with no seasoning requirements. Here is the general criteria for cash out refi no seasoning for Arkansas loans. Easiest way to see if you qualify is to answer a few question in our [online quoter](https://www.offermarket.us/loans). It will compare all of our lending criteria against your answers and give you a response in under 1 minute without you needing to read anything. If in case you want to do it the hard way, please read on to see some of the guidelines below with a [full list of our requirements here](https://www.offermarket.us/blog/cash-out-refi-no-seasoning).

 

Minimum loan amount has to be above $55,000. Minimum As-Is value on the appraisal has to be $100,000. Between 1-4 units. Must have an active lease with proof of security deposit collected. Property condition must be [C4 or better](https://www.offermarket.us/blog/property-condition-ratings-c1-c2-c3-c4-c5-c6). Minimum credit score of 680. Credit score between 680 to 699, gets maximum LTV of 70%, credit score of 700+ gets maximum LTV of 75%. Max LTC, 100% (less than 90 days seasoning), 140% (90 to 179 days seasoning). Minimum verified rehab, 20% of purchase price (less than 90 days seasoning), n/a (90+ days seasoning). Minimum verified rehab, is an improvement that has been done to the unit to verify increase in as-is value in such as short period of time (less then 90 days) to justify the no seasoning period. Origination fee of 1 to 2 points depending on the loan amount to keep the lights on. Lender fee, $1,995 (doesn't go to OfferMarket), includes multiple fees to several different 3rd party verification services, necessary to certify the information in the Loan File for closing. Appraisal at AMC market price, we also have a promotion that new clients get 100% of their appraisal refunded at closing and 50% refund for existing clients. Time to close, 20-25 days.

 

I know this is a lot of information. You don't have to lift a finger to calculate any of this to see if you qualify, all you have to do is answer 14 simple questions about your deal and we will tell you if we are a good fit for you and what kind of deal we can offer you. To get an answer on your specific situation, please answer 14 simple questions here in our [online quoter for Arkansas DSCR loans](https://www.offermarket.us/loans).

 

## Do I need to have my property insured to qualify for funding?

 

Yes, but if you don't already have insurance, we can roll it into the lending process with no extra charge or effort to you. Our insurance team works with thousands of carriers and is intimately familiar with the insurance requirements of your loan. They will be able to ether talk to the agent of your choice or find the most competitive offer without our network of carriers to complement your loan with no extra effort or expense to you. If you already have insurance, you should get an instant quote to see if we can offer you a more competitive rate and save you thousands of dollars over the lifetime of your policy. [Get you instant insurance quote](https://www.offermarket.us/insurance) here.

 

## What are the best DSCR Lender Arkansas?

 

There are many DSCR lenders in Arkansas and you have many options to get your loan funded. As fellow rental property investors, we built OfferMarket to be a low cost DSCR lender. We believe you should never have to wonder if you're getting the best possible terms from your lender. You should never need to waste time negotiating. That's why we provide you with our best possible term sheet every single time -- you get our lowest rate and lowest fees.

 

Your first loan with OfferMarket is the start of a long term relationship. It's our opportunity to provide you with remarkable value and prove that we deserve to be your partner on your real estate investing journey. We feel a sense of obligation to prove we deserve your business on each and every loan.

DSCR Loan Arkansas offers real estate investors the opportunity to secure financing based on debt service coverage ratio to optimize their investment returns.

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DSCR Loans Arkansas for Rental Property Investors

DSCR Loan Arkansas

**Last updated:** February 6, 2024

 

## What is a Certificate of Good Standing?

 

A Certificate of Good Standing is a document issued by the state in which your business is formed which certifies, as of the date issued, that your business has submitted all required documents, fees and filings.

 

When you obtain a Certificate of Good Standing, it means your business is duly formed and authorized to do business in the state, and that it is in compliance with certain statutory requirements. It essentially confirms that the entity is in good standing with the state authorities.

 

A Certificate of Good Standing is commonly required for business transactions such as obtaining financing, entering into contracts, or expanding operations to other states. Commercial, business purpose lenders who provide loans to business entities (typically LLC or corporation) will commonly require this document in as a standard underwriting guideline. It is required in order to obtain a [DSCR loan](https://www.offermarket.us/blog/dscr-loan) or [fix and flip loan](https://www.offermarket.us/blog/fix-and-flip-loans) from OfferMarket. 

 

All states provide this certificate upon request and satisfaction of requirements to be in good standing. A common source of confusion is the name that each state uses -- *Certificate of Good Standing*, *Certificate of Existence*, *Certificate of Status*, and *Certificate of Fact* are used among different states.

 

Depending on the state, the cost and timeline to receive your Certificate of Good Standing will vary.

 

| **State** 	| **Abbreviation** 	| **Official Document Name** 	| **Cost** 	| **Website** 	|
|---	|---	|---	|---	|---	|
| Alabama 	| AL 	| Certificate of Existence 	| $25 	| [Alabama Secretary of State](https://www.alabamainteractive.org/sos_eCertificate/welcome.action) 	|
| Alaska 	| AK 	| Certificate of Compliance 	| $10 	| [Alaska Division of Corporations, Business & Professional Licensing](https://www.commerce.alaska.gov/web/cbpl/) 	|
| Arizona 	| AZ 	| Certificate of Good Standing 	| $45 	| [Arizona Corporation Commission](https://ecorp.azcc.gov/) 	|
| Arkansas 	| AR 	| Certificate of Good Standing 	| $25 	| [Arkansas Secretary of State](https://www.sos.arkansas.gov/corps/) 	|
| California 	| CA 	| Certificate of Good Standing 	| $5 	| [California Secretary of State](https://www.sos.ca.gov/) 	|
| Colorado 	| CO 	| Certificate of Good Standing 	| $10 	| [Colorado Secretary of State](https://www.sos.state.co.us/) 	|
| Connecticut 	| CT 	| Certificate of Legal Existence 	| $50 	| [Connecticut Secretary of the State](https://portal.ct.gov/sots) 	|
| Delaware 	| DE 	| Certificate of Good Standing 	| $50 	| [Delaware Division of Corporations](https://corp.delaware.gov/) 	|
| Florida 	| FL 	| Certificate of Status 	| $8.75 	| [Florida Department of State](https://dos.myflorida.com/sunbiz/) 	|
| Georgia 	| GA 	| Certificate of Existence 	| $10 	| [Georgia Secretary of State](https://ecorp.sos.ga.gov/) 	|
| Hawaii 	| HI 	| Certificate of Good Standing 	| $7.50 	| [Hawaii Business Express](https://portal.ehawaii.gov/business/) 	|
| Idaho 	| ID 	| Certificate of Good Standing 	| $10 	| [Idaho Secretary of State](https://sos.idaho.gov/) 	|
| Illinois 	| IL 	| Certificate of Good Standing 	| $50 	| [Illinois Secretary of State](https://www.cyberdriveillinois.com/) 	|
| Indiana 	| IN 	| Certificate of Existence 	| $10 	| [Indiana Secretary of State](https://www.in.gov/sos/business/index.htm) 	|
| Iowa 	| IA 	| Certificate of Status 	| $5 	| [Iowa Secretary of State](https://sos.iowa.gov/) 	|
| Kansas 	| KS 	| Certificate of Good Standing 	| $15 	| [Kansas Secretary of State](https://www.sos.ks.gov/) 	|
| Kentucky 	| KY 	| Certificate of Existence 	| $10 	| [Kentucky Secretary of State](https://www.sos.ky.gov/) 	|
| Louisiana 	| LA 	| Certificate of Good Standing 	| $30 	| [Louisiana Secretary of State](https://www.sos.la.gov/) 	|
| Maine 	| ME 	| Certificate of Good Standing 	| $30 	| [Maine Bureau of Corporations, Elections & Commissions](https://www.maine.gov/sos/cec/) 	|
| Maryland 	| MD 	| Certificate of Status 	| $20 	| [Maryland Department of Assessments and Taxation](https://egov.maryland.gov/businessexpress) 	|
| Massachusetts 	| MA 	| Certificate of Good Standing 	| $15 	| [Massachusetts Secretary of the Commonwealth](https://www.sec.state.ma.us/cor/) 	|
| Michigan 	| MI 	| Certificate of Good Standing 	| $10 	| [Michigan Department of Licensing and Regulatory Affairs](https://www.michigan.gov/lara) 	|
| Minnesota 	| MN 	| Certificate of Good Standing 	| $50 	| [Minnesota Secretary of State](https://www.sos.state.mn.us/) 	|
| Mississippi 	| MS 	| Certificate of Good Standing 	| $27 	| [Mississippi Secretary of State](https://www.sos.ms.gov/) 	|
| Missouri 	| MO 	| Certificate of Good Standing 	| $10 	| [Missouri Secretary of State](https://www.sos.mo.gov/) 	|
| Montana 	| MT 	| Certificate of Good Standing 	| $10 	| [Montana Secretary of State](https://sosmt.gov/) 	|
| Nebraska 	| NE 	| Certificate of Good Standing 	| $10 	| [Nebraska Secretary of State](https://sos.nebraska.gov/) 	|
| Nevada 	| NV 	| Certificate of Good Standing 	| $50 	| [Nevada Secretary of State](https://www.nvsos.gov/) 	|
| New Hampshire 	| NH 	| Certificate of Good Standing 	| $25 	| [New Hampshire Secretary of State](https://sos.nh.gov/) 	|
| New Jersey 	| NJ 	| Certificate of Good Standing 	| $25 	| [New Jersey Division of Revenue and Enterprise Services](https://www.nj.gov/treasury/revenue/) 	|
| New Mexico 	| NM 	| Certificate of Good Standing 	| $25 	| [New Mexico Secretary of State](https://www.sos.state.nm.us/) 	|
| New York 	| NY 	| Certificate of Good Standing 	| $25 	| [New York Department of State](https://www.dos.ny.gov/) 	|
| North Carolina 	| NC 	| Certificate of Existence 	| $10 	| [North Carolina Secretary of State](https://www.sosnc.gov/) 	|
| North Dakota 	| ND 	| Certificate of Good Standing 	| $10 	| [North Dakota Secretary of State](https://sos.nd.gov/) 	|
| Ohio 	| OH 	| Certificate of Good Standing 	| $5 	| [Ohio Secretary of State](https://www.sos.state.oh.us/) 	|
| Oklahoma 	| OK 	| Certificate of Existence 	| $20 	| [Oklahoma Secretary of State](https://www.sos.ok.gov/) 	|
| Oregon 	| OR 	| Certificate of Good Standing 	| $10 	| [Oregon Secretary of State](https://sos.oregon.gov/) 	|
| Pennsylvania 	| PA 	| Certificate of Status 	| $30 	| [Pennsylvania Department of State](https://www.dos.pa.gov/) 	|
| Rhode Island 	| RI 	| Certificate of Good Standing 	| $50 	| [Rhode Island Secretary of State](https://www.sos.ri.gov/) 	|
| South Carolina 	| SC 	| Certificate of Existence 	| $10 	| [South Carolina Secretary of State](https://www.sos.sc.gov/) 	|
| South Dakota 	| SD 	| Certificate of Good Standing 	| $20 	| [South Dakota Secretary of State](https://sdsos.gov/) 	|
| Tennessee 	| TN 	| Certificate of Existence 	| $20 	| [Tennessee Secretary of State](https://sos.tn.gov/) 	|
| Texas 	| TX 	| Certificate of Good Standing 	| $5 	| [Texas Secretary of State](https://www.sos.texas.gov/) 	|
| Utah 	| UT 	| Certificate of Good Standing 	| $12 	| [Utah Division of Corporations and Commercial Code](https://corporations.utah.gov/) 	|
| Vermont 	| VT 	| Certificate of Good Standing 	| $25 	| [Vermont Secretary of State](https://sos.vermont.gov/) 	|
| Virginia 	| VA 	| Certificate of Fact of Existence 	| $10 	| [Virginia State Corporation Commission](https://cis.scc.virginia.gov/) 	|
| Washington 	| WA 	| Certificate of Existence 	| $20 	| [Washington Secretary of State](https://www.sos.wa.gov/) 	|
| West Virginia 	| WV 	| Certificate of Good Standing 	| $10 	| [West Virginia Secretary of State](https://business.wv.gov/Pages/default.aspx) 	|
| Wisconsin 	| WI 	| Certificate of Status 	| $10 	| [Wisconsin Department of Financial Institutions](https://www.wdfi.org/) 	|
| Wyoming 	| WY 	| Certificate of Good Standing 	| $5 	| [Wyoming Secretary of State](https://sos.wyo.gov/) 	|
| Washington, D.C. 	| DC 	| Certificate of Good Standing 	| $55 	| [District of Columbia Department of Consumer and Regulatory Affairs](https://dcra.dc.gov/) 	|

 

## Certificate of Existence

 

Several states refer to their certificate of good standing as a "Certificate of Existence".

 

## Certificate of Fact

 

Texas is one of the only states that calls their certificate of good standing a "Certificate of Fact".

 

## Certificate of Status

 

Several states, including Maryland, refer to their certificate of good standing as a "Certificate of Status".

A Certificate of Good Standing certifies your business is current with taxes and filings, issued by the state where your business is incorporated.

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Certificate of Good Standing Explained

Certificate of Good Standing

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