Arkansas's mortgage market has its own distinct rules — from closing customs to transfer tax structure to the specific down payment programs available through the state's housing finance agency. This guide covers what's genuinely different about buying in Arkansas, not just the generic national mortgage process.
Arkansas at a Glance
Est. payment: $1,595/mo
Est. payment: $2,133/mo
Est. payment: $1,259/mo
Estimated payments assume 5% down, 6.82% 30-year fixed rate, plus $150/month insurance. Your actual payment will vary by lender, credit score, and specific property tax rate.
How Arkansas Closings Work
Arkansas allows either attorney or title-company closings, and most residential transactions default to title-company closings for cost efficiency.
Transfer tax: $3.30 per $1,000 of sale price (real property transfer tax), customarily split evenly.
The Arkansas Property Tax Quirk You Should Know
Arkansas offers a unique property tax freeze for homeowners age 65+ or disabled, locking the assessed value at the year they turn 65 or become disabled — an important consideration if you're purchasing on behalf of or with an older family member.
Arkansas's Down Payment Assistance Program
ADFA (Arkansas Development Finance Authority) Move-Up, Household Down Payment Assistance (DPA)
ADFA's DPA program provides up to $15,000 or 10% of the purchase price as a forgivable second mortgage, forgiven at a rate of 20% per year over 5 years of continuous occupancy.
USDA Rural Eligibility in Arkansas
Arkansas has one of the highest proportions of USDA-eligible land of any state — outside the Little Rock–North Little Rock–Conway metro area, the vast majority of the state qualifies.
Mortgage Loan Limits in Arkansas
| Loan Type | Limit | Down Payment |
|---|---|---|
| Conventional (Fannie/Freddie) | $766,550 | 3–20% |
| FHA (AR) | $498,257 | 3.5% |
| VA (eligible veterans) | No limit (full entitlement) | 0% |
| USDA (eligible rural areas) | No set limit | 0% |
Frequently Asked Questions
Arkansas allows either attorney or title-company closings, and most residential transactions default to title-company closings for cost efficiency.
Arkansas's transfer tax structure: $3.30 per $1,000 of sale price (real property transfer tax), customarily split evenly. This is typically disclosed on your Closing Disclosure and paid at settlement.
ADFA's DPA program provides up to $15,000 or 10% of the purchase price as a forgivable second mortgage, forgiven at a rate of 20% per year over 5 years of continuous occupancy.
Arkansas has one of the highest proportions of USDA-eligible land of any state — outside the Little Rock–North Little Rock–Conway metro area, the vast majority of the state qualifies.
Sources for This Page
- Freddie Mac PMMS — national rate benchmark
- HUD FHA Mortgage Limits — AR loan limit data
- USDA Rural Development Eligibility — Arkansas rural zone verification
- Arkansas state Housing Finance Agency — program terms and current DPA availability