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CABOT, Ark. (KTHV) - Some home buyers are taking advantage of low interest rates and federal programs to get better deals on houses and use the current housing market in their favor.

Christina Whiting, whois helping her son look for a new home in the Cabot and Austin area, isaware of the historically low interest rate of 3.25 percent.

"It makes the perfect opportunity to be a first time home buyer," Whiting said.

The interest rate is contingent on the buyer's credit score, which is typically a minimum of 640.

"You get more house for the money with the rates being so low. They have not been this low," says Fayon Haines, loan officer for the Arkansas Federal Credit Union.

With theinterest rates being lower than they have in the past, a lot of people are opting and buying bigger homes or saving that extra money.

Austin, a suburb outside of Cabot, is booming because Haines says buyers also qualify for the federal government's Rural Development Program.

"Your town must have less than 25,000 people. You can get 100 percent loan as long as you have 660 credit score and good credit," said Haines.

Property values are climbing in Cabot and surrounding area. It's the third fastest growing city in Arkansas with help from the Air Force Base and the school district, which has a 98 percent graduation rate.

"Where you buy is everything. You want to make sure you're in a community that will grow and not decline," said Whiting.

The Veterans Affairs also has a 100 percent loan program for veterans. Haines also recommends the house payment should not be more than 29 percent of your income.

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