What is an FHA Loan? Requirements, How It Works and How to Get One
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2025 FHA Loan Limits in Arkansas

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Content was accurate at the time of publication.

FHA loans, backed by the Federal Housing Administration, offer low minimum down payments and flexible credit score requirements, making homeownership accessible to more borrowers.

While FHA loans are easier to qualify for than other mortgages, they carry maximum borrowing limits. The 2025 FHA loan limit for a single-family home in Arkansas is $524,225 across all 75 counties. In this guide, learn how FHA limits are set, what qualifications are necessary and how to find an approved lender.

Arkansas single-family FHA loan limits

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Each year, FHA loan limits are established by county and property type, giving homebuyers a maximum amount they can borrow. These limits are a certain percentage of the conforming loan limits for conventional loans set by the Federal Housing Finance Agency (FHFA). The conforming loan limit for 2025 is $806,500.

The “floor” is considered the lowest FHA loan limit that homebuyers can borrow and is $524,255 (65% of $806,500), and the “ceiling” is the highest limit at 150% of the conforming loan limit.

Single-family homes in most counties across the U.S. have a loan limit of $524,255. However, these limits are as high as $1,209,750 in more expensive metro areas. Alaska, Hawaii, Guam and the U.S. Virgin Islands have even higher limits because they are designated as special exception areas because of the higher construction costs there.

In Arkansas, the 2025 FHA loan limit for single-family homes in all counties follows FHA’s floor, $524,255, while higher limits of $1,008,300 apply to multifamily properties.

To qualify for an FHA loan in Arkansas, you must meet the following minimum requirements established by the FHA. Some lenders may impose additional guidelines:

  • Minimum credit score of 500: You can qualify with a credit score as low as 500; however, you need at least a 580 credit score to take advantage of FHA’s 3.5% minimum down payment.
  • Minimum down payment of 3.5%: Your credit score will determine your minimum down payment. If you have a 580 or higher score, you can make a 3.5% down payment. However, you must put at least 10% down if your credit score is between 500 and 579.
  • Income history. FHA loan lenders don’t usually require a minimum income to qualify, but you will need to provide employment and income history for the last two years.
  • Maximum debt-to-income (DTI) ratio of 43%: FHA guidelines set the maximum debt-to-income (DTI) ratio (the sum of your monthly debt payments divided by your monthly pretax income) at 43%. However, lenders may approve a higher ratio in some cases.
  • Primary residence. FHA loans are for primary residences only; you must live in the home for at least one year.
  • Home appraisal. An FHA appraisal assesses the house’s market value and confirms it meets FHA’s property standards.
  • Mortgage insurance. You’ll need two types of FHA mortgage insurance: an upfront premium of 1.75% of the mortgage amount (typically financed with the loan) and an annual mortgage insurance premium of 0.15% to 0.75% of the loan amount (calculated in your monthly mortgage payments).

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Buying a multifamily property with an FHA loan

The FHA program also allows you to buy a multifamily home of two to four units with just 3.5% down. Some people purchase multi-unit properties to use a strategy called house hacking: living in one unit of a property and renting out the others, using the rent toward the mortgage. A portion of the anticipated rental income can be used to qualify for the loan. Similar to a single-family home, these multifamily properties come with specific requirements to qualify, including:

  • A credit score of at least 580 to qualify for a 3.5% down payment, or pay 10% down if your credit score is between 500 and 579
  • Proof of employment history, such as W-2s, for the past two years
  • A debt-to-income ratio of no more than 43% in most cases
  • A certain amount of cash reserves as determined by the lender
  • Living in the home as your primary residence for at least one year

The FHA loan limits for multifamily properties in Arkansas in 2025 are:

Number of unitsLow-cost FHA loan limit
Two$671,200
Three$811,275
Four$1,008,300

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