Arkansas VA Loan Requirements 2026
No down payment, no monthly mortgage insurance, the current funding fee table, and the ADFA exemption that lets Arkansas veterans use the first-time buyer program even after owning a home.
VA loan eligibility in Arkansas
Eligibility is federal and turns on service history rather than on where you buy. What you need before a lender can proceed is a Certificate of Eligibility.
| Group | General requirement |
|---|---|
| Veterans | Service length and discharge conditions set by the VA for the period served |
| Active duty | Generally 90 continuous days of service |
| National Guard and Reserve | Qualifying service, with different thresholds than active duty |
| Surviving spouses | May be eligible, including spouses receiving Dependency and Indemnity Compensation |
Apply for your Certificate of Eligibility through the VA’s COE request page. Most lenders can pull it electronically.
What a VA loan is worth
In a state where the FHA limit is the same everywhere and prices sit below the national floor, the VA loan’s advantage is not borrowing capacity — it is cost.
| Benefit | Detail |
|---|---|
| No down payment | Available with full entitlement, unlike FHA’s 3.5% minimum |
| No monthly mortgage insurance | FHA charges annual MIP for the life of most loans; VA charges none |
| No loan limit with full entitlement | Since 2020 there is no cap for borrowers with full entitlement |
| Assumability | A VA loan can be assumed by a qualified buyer, which matters when rates rise |
Against an FHA loan at 3.5% down, a VA borrower in Arkansas avoids both the 1.75% upfront premium and the annual premium that runs for the life of the loan. Over a full term that difference is usually larger than the funding fee.
VA loan requirements
| Requirement | Standard |
|---|---|
| Credit score | The VA publishes no minimum; lenders commonly apply 580 to 620 |
| Occupancy | Must be your primary residence |
| Appraisal | VA appraisal required, including minimum property requirements |
| Entitlement | Full entitlement means no loan limit and no down payment |
| Residual income | The VA applies a residual income test alongside debt-to-income |
Because the VA sets no credit score floor, the number you are quoted is the lender’s own overlay. It is worth shopping more than one VA-experienced lender before assuming you do not qualify.
VA funding fee
The funding fee replaces mortgage insurance. It is a one-time charge, it can be financed into the loan, and it falls as your down payment rises.
| Down payment | First use | After first use |
|---|---|---|
| Less than 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
Veterans with VA disability ratings, surviving spouses receiving DIC, and active-duty Purple Heart recipients are exempt from the funding fee. Cash-out refinance funding fees are 2.15% for first use and 3.30% for subsequent use; IRRRLs carry a 0.5% fee. Confirm current rates at the VA’s official funding fee page.
Pairing a VA loan with ADFA assistance
A VA loan can serve as the first mortgage under either Arkansas Development Finance Authority program, and Arkansas gives veterans one additional advantage on the first-time buyer test.
| Program | How a VA loan fits |
|---|---|
| ADFA StartSmart | VA is an eligible first mortgage type, at approximately 1% below market rate |
| ADFA Move-Up | VA is eligible, with no first-time buyer requirement at all |
| ADFA Down Payment Assistance | $1,000 to $15,000 as a repayable second mortgage behind the VA first |
Veterans and spouses of veterans with proper documentation are exempt from ADFA’s first-time buyer requirement, which means a veteran who has owned before can still use StartSmart and its below-market rate. That exemption sits alongside the 30 targeted counties where the requirement is waived for everyone.
