Arkansas FHA Loan Requirements 2026
One FHA limit covers all 75 Arkansas counties in 2026 — plus the credit and down payment thresholds, what mortgage insurance actually costs, and how FHA pairs with ADFA assistance.
Arkansas FHA loan limits
There is only one FHA limit to learn in Arkansas. All 75 counties carry the same 2026 figure, because no Arkansas county has median prices high enough to lift it above the national floor.
| Property type | FHA limit (2026) |
|---|---|
| One-family | $541,287 |
| Two-family | $693,050 |
| Three-family | $837,700 |
| Four-family | $1,041,125 |
Confirm the current figure for any county at the HUD FHA Mortgage Limits lookup. Limits reset each January.
FHA loan requirements
FHA requirements are federal, so they do not change at the Arkansas state line. What changes is how far the loan goes against local prices.
| Requirement | Standard |
|---|---|
| Minimum down payment | 3.5% with a credit score of 580 or above |
| Lower credit scores | 500 to 579 requires 10% down |
| Occupancy | Must be your primary residence |
| Property standards | Must meet HUD minimum property requirements at appraisal |
| Mortgage insurance | Required upfront and annually, regardless of down payment |
The 3.5% down at 580 threshold is set out in HUD Handbook 4000.1. Individual lenders frequently apply higher minimum scores than HUD does, which is why two lenders can give different answers on the same file.
FHA mortgage insurance premiums (MIP)
FHA charges mortgage insurance twice: once upfront and once annually. These are national figures, not Arkansas-specific.
| Premium | Rate | How long |
|---|---|---|
| Upfront MIP | 1.75% of the base loan amount | Paid at closing or financed into the loan |
| Annual MIP, LTV above 95% | 0.55% | The full mortgage term |
| Annual MIP, LTV above 90% to 95% | 0.50% | The full mortgage term |
| Annual MIP, LTV 90% or below | 0.50% | 11 years |
Rates shown are for terms longer than 15 years, at the standard base loan amount tier. HUD publishes a higher set of annual rates for loans above a threshold tied to the conforming loan limit — no Arkansas FHA loan can reach it, because the statewide FHA limit of $541,287 sits well below it. Source: HUD Mortgagee Letter 2023-05.
The practical consequence is that a 3.5% down FHA loan carries mortgage insurance for its entire life. The only way off it is to refinance out of FHA.
FHA compared with conventional
With Arkansas prices where they are, the choice between FHA and conventional is usually decided by credit rather than by loan size.
| Factor | FHA | Conventional |
|---|---|---|
| Minimum down payment | 3.5% | 3–20% |
| Minimum credit score | 580 at 3.5% down | 620 in common lender practice |
| Mortgage insurance | Upfront and annual, usually for the life of the loan | Cancellable once you reach 20% equity |
| 2026 limit in Arkansas | $541,287 | $832,750 |
Because the conventional limit is more than $290,000 higher than the FHA limit statewide, buyers at the top of the Arkansas market are steered toward conventional by loan size alone. Below that, the deciding factor is almost always whether mortgage insurance can be cancelled.
Pairing FHA with ADFA assistance
An FHA loan can be the first mortgage under either Arkansas Development Finance Authority program, which is how FHA buyers can access ADFA down payment help.
| Program | How FHA fits |
|---|---|
| ADFA StartSmart | FHA is one of the eligible first mortgage types, at approximately 1% below market rate |
| ADFA Move-Up | FHA is eligible, with no first-time buyer requirement |
| ADFA Down Payment Assistance | $1,000 to $15,000 as a repayable second mortgage behind the FHA first |
The assistance is a repayable second mortgage over a 10-year term at the first mortgage rate, not a grant. Budget for two payments, not one. Full detail is in the Arkansas first-time home buyer guide.
