Graduate students in Little Rock’s long professional programs—at the University of Arkansas for Medical Sciences, UA Little Rock’s William H. Bowen School of Law, and the new Lyon College School of Dental Medicine—typically rent during their three or four years in the city. But Jerry Larkowski, Managing Broker at ESQ. Realty Group, LLC and a licensed attorney, says that while renting is often the right call, students who plan to stay in Central Arkansas after graduation should start planning much earlier than most do.
Larkowski emphasizes that not every student needs to buy. Those headed to a residency or job in another state may be better off renting. For students who intend to remain in the area, however, a home offers privacy and quiet—valuable for studying for boards or the bar exam. “If one knows they will remain in Central Arkansas after school, it makes sense to start early,” he says. There is also a long-term benefit: when income grows and it’s time for a larger home, the first house can become a rental property rather than being sold.
For students not ready to buy, Larkowski suggests setting a 12-month goal and using that time to learn Little Rock. He advises paying attention to different neighborhoods, visiting open houses on Sunday afternoons, and browsing homes currently for sale beforehand to decide which are worth the drive. “The best way to get to know a neighborhood is to walk it,” he says. “Drive there, park your car, and take a stroll.” Spending time there as a customer—shopping at nearby stores, eating at restaurants, talking to residents—also helps. Talking to lenders and realtors early, long before making an offer, is equally important.
Heavy student loans are the norm for medical, dental, and law students, and they often surprise students when they first meet with a lender. Larkowski explains that student loans affect the debt-to-income ratio just like a car loan, including loans in deferment. A $0 payment on a credit report does not mean a lender will count it as $0. FHA guidelines generally count 0.5% of the outstanding balance each month when no payment is reported, so a $200,000 balance could be treated as a $1,000 monthly payment. Under Fannie Mae guidelines, a deferred loan can be counted at 1% of the balance or a fully amortizing payment. That makes one question worth asking any lender before touring a single house: how will you count my student loans? The answer can change a budget by hundreds of dollars a month.
On the loans themselves, Larkowski advises choosing the repayment plan with the lowest monthly payment. “You will be able to ‘buy more house’ when it’s time,” he says. The trade-off is that a lower payment can mean more interest over the life of the loan, which is worth discussing with a financial advisor. Federal loans made on or after July 1, 2026, also come with fewer choices: a tiered standard plan or the income-based Repayment Assistance Plan.
Some students buy during school and rent out part of the property, a strategy known as house hacking—such as a duplex where you live on one side and rent the other, or a house with spare bedrooms for roommates. FHA financing can be used for an owner-occupied property with up to four units, putting a duplex within reach for some buyers. “The duplex ‘house hack’ concept looks good on paper; if you can make it work, do it,” Larkowski says. He attaches two conditions: hire a property manager and never tell the tenant next door that you own the building. “The first time it happens for a burst water pipe at 3 a.m., you will wish you had used a ‘PM,’” he says. Second, put roommates on paper—have a lease, no matter how good a friend they are. Whether a student buys during school or two years after graduation, his advice on timing is the same: “You can start too late, but you can’t start too early.”
