FHA Insured Mortgages in Arkansas
What an FHA loan is
FHA loans are mortgages insured (not issued) by the Federal Housing Administration, a division of HUD. They exist to make homeownership accessible to borrowers with modest credit histories or limited down-payment savings.
Who qualifies
Minimum credit score of 580 qualifies for 3.5% down; 500–579 qualifies for 10% down. Debt-to-income ratios up to 43% (sometimes higher with compensating factors) are typically acceptable.
Mortgage insurance
FHA loans carry both an upfront mortgage-insurance premium (UFMIP, rolled into the loan) and an annual MIP paid monthly. Since 2013, annual MIP on most FHA loans persists for the life of the loan unless refinanced out.
County loan limits
FHA limits are set per county by HUD and revised annually. In Arkansas, all 75 counties currently fall in the standard (non-high-cost) band.
Common questions
What credit score do I need for FHA? 580 for 3.5% down; 500–579 for 10% down. Most lenders impose overlays that push the practical minimum higher.
Does FHA MIP go away? For loans originated after 2013 with less than 10% down, MIP persists for the life of the loan. Refinancing into a conventional loan is the common path to drop it.
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What is an FHA loan in Arkansas?
An FHA loan is a Federal Housing Administration-insured mortgage with a 3.5% minimum down payment, a 580 minimum credit score for full leverage, and Arkansas county-level loan limits ($524,225 for 1-unit properties in 2026 across most Arkansas counties; higher in Northwest Arkansas counties like Benton and Washington). FHA accepts gift funds for down payment and is the most-used program by first-time Arkansas buyers.
| Down payment | 3.5% |
|---|---|
| Min. credit score | 580 |
| 2026 AR std. limit | $524,225 |
| Gift funds | Accepted |
FHA loans in every major Arkansas city.
3.5% down with 580+ FICO. The first-time-buyer workhorse program in every Arkansas market. Direct FHA page for each city below.
Common questions about FHA loans in Arkansas
Who qualifies for an FHA loan in Arkansas?
FHA loans are available to U.S. citizens, permanent residents, and qualifying non-citizens with a Social Security number, valid employment history (typically 2+ years), and the ability to demonstrate stable income. There are no income limits. Minimum credit score is 580 for the 3.5%-down option or 500 for 10%-down (with stronger underwriting requirements).
What’s the minimum FHA credit score in Arkansas?
Most Arkansas FHA lenders require a minimum 580 credit score for the 3.5%-down program. Borrowers with scores between 500–579 can qualify for FHA but must put 10% down and meet stricter underwriting. Higher scores typically result in better rates and lower mortgage insurance.
How much down payment do I need for FHA in Arkansas?
3.5% down is the standard FHA minimum for borrowers with 580+ FICO. On a $250,000 Arkansas home, that’s $8,750. Down payment can come from your own savings, gift funds from family, or seller concessions up to 6% of the sales price.
What’s the FHA loan limit in Arkansas?
2026 FHA loan limits in Arkansas: $524,225 for 1-unit homes in most counties (the standard floor), with higher limits in Benton and Washington counties (Northwest Arkansas) where median home prices exceed standard thresholds. 2-unit through 4-unit limits scale up proportionally.
Can I use gift funds for FHA?
Yes. FHA accepts 100% gift funds for the down payment and closing costs from family members, employers, or qualifying nonprofits. The gift must be documented with a signed gift letter stating the funds are not a loan and require no repayment.
Does FHA work for first-time buyers?
Yes — FHA is the most-used program by Arkansas first-time buyers. It accommodates lower credit scores, smaller down payments, and gift funds. FHA can also be combined with state down-payment assistance like ADFA Move-Up for additional savings.
Is FHA mortgage insurance permanent?
For loans originated after June 2013, FHA mortgage insurance is required for the life of the loan when the down payment is less than 10%. With 10%+ down, MIP can be removed after 11 years. Many borrowers refinance to conventional once they reach 20% equity to escape FHA MIP.
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