What are Conventional Loans and Conforming Loans?

By definition, a Conventional Loan is any mortgage that’s not guaranteed or insured by the federal government. Arkansas conventional loans may be either “conforming” and “non-conforming”, although ‘conventional loans’ generally refer to ‘conforming loans’. Therefore Arkansas conventional loan limits are the same thing as Arkansas conforming loan limits.

Arkansas Conventional Loan Limits

What is the maximum amount that I can borrow?

Arkansas Conventional Loan LimitsConventional loan limits in Arkansas are determined by:

  • Maximum LTV Ratio:  The maximum financing loan-to-value ratio for conventional mortgages is 80% – 97% of the appraised value of the home or its selling price, whichever is lower. Learn how to calculate loan-to-value.
  • Maximum Loan Amount: Conventional loan limits in Arkansas are set at the floor amount of $424,100 across the entire state. Metro areas in AR with a conforming limit of $424,100 include include Little Rock, Hot Springs, Fort Smith and Fayetteville.

Search all Conventional Loan Limits in Arkansas:

County Name
Area
1-Unit
2-Unit
3-Unit
4-Unit
ARKANSASNON-METRO$510,400$653,550$789,950$981,700
ASHLEYNON-METRO$510,400$653,550$789,950$981,700
BAXTERMOUNTAIN HOME, AR$510,400$653,550$789,950$981,700
BENTONFAYETTEVILLE-SPRINGDALE-ROGERS, AR$510,400$653,550$789,950$981,700
BOONEHARRISON, AR$510,400$653,550$789,950$981,700
BRADLEYNON-METRO$510,400$653,550$789,950$981,700
CALHOUNCAMDEN, AR$510,400$653,550$789,950$981,700
CARROLLNON-METRO$510,400$653,550$789,950$981,700
CHICOTNON-METRO$510,400$653,550$789,950$981,700
CLARKARKADELPHIA, AR$510,400$653,550$789,950$981,700
CLAYNON-METRO$510,400$653,550$789,950$981,700
CLEBURNENON-METRO$510,400$653,550$789,950$981,700
CLEVELANDPINE BLUFF, AR$510,400$653,550$789,950$981,700
COLUMBIAMAGNOLIA, AR$510,400$653,550$789,950$981,700
CONWAYNON-METRO$510,400$653,550$789,950$981,700
CRAIGHEADJONESBORO, AR$510,400$653,550$789,950$981,700
CRAWFORDFORT SMITH, AR-OK$510,400$653,550$789,950$981,700
CRITTENDENMEMPHIS, TN-MS-AR$510,400$653,550$789,950$981,700
CROSSNON-METRO$510,400$653,550$789,950$981,700
DALLASNON-METRO$510,400$653,550$789,950$981,700
DESHANON-METRO$510,400$653,550$789,950$981,700
DREWNON-METRO$510,400$653,550$789,950$981,700
FAULKNERLITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR$510,400$653,550$789,950$981,700
FRANKLINFORT SMITH, AR-OK$510,400$653,550$789,950$981,700
FULTONNON-METRO$510,400$653,550$789,950$981,700
GARLANDHOT SPRINGS, AR$510,400$653,550$789,950$981,700
GRANTLITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR$510,400$653,550$789,950$981,700
GREENEPARAGOULD, AR$510,400$653,550$789,950$981,700
HEMPSTEADHOPE, AR$510,400$653,550$789,950$981,700
HOT SPRINGMALVERN, AR$510,400$653,550$789,950$981,700
HOWARDNON-METRO$510,400$653,550$789,950$981,700
INDEPENDENCEBATESVILLE, AR$510,400$653,550$789,950$981,700
IZARDNON-METRO$510,400$653,550$789,950$981,700
JACKSONNON-METRO$510,400$653,550$789,950$981,700
JEFFERSONPINE BLUFF, AR$510,400$653,550$789,950$981,700
JOHNSONNON-METRO$510,400$653,550$789,950$981,700
LAFAYETTENON-METRO$510,400$653,550$789,950$981,700
LAWRENCENON-METRO$510,400$653,550$789,950$981,700
LEENON-METRO$510,400$653,550$789,950$981,700
LINCOLNPINE BLUFF, AR$510,400$653,550$789,950$981,700
LITTLE RIVERTEXARKANA, TX-AR$510,400$653,550$789,950$981,700
LOGANNON-METRO$510,400$653,550$789,950$981,700
LONOKELITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR$510,400$653,550$789,950$981,700
MADISONFAYETTEVILLE-SPRINGDALE-ROGERS, AR$510,400$653,550$789,950$981,700
MARIONNON-METRO$510,400$653,550$789,950$981,700
MILLERTEXARKANA, TX-AR$510,400$653,550$789,950$981,700
MISSISSIPPIBLYTHEVILLE, AR$510,400$653,550$789,950$981,700
MONROENON-METRO$510,400$653,550$789,950$981,700
MONTGOMERYNON-METRO$510,400$653,550$789,950$981,700
NEVADAHOPE, AR$510,400$653,550$789,950$981,700
NEWTONHARRISON, AR$510,400$653,550$789,950$981,700
OUACHITACAMDEN, AR$510,400$653,550$789,950$981,700
PERRYLITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR$510,400$653,550$789,950$981,700
PHILLIPSHELENA-WEST HELENA, AR$510,400$653,550$789,950$981,700
PIKENON-METRO$510,400$653,550$789,950$981,700
POINSETTJONESBORO, AR$510,400$653,550$789,950$981,700
POLKNON-METRO$510,400$653,550$789,950$981,700
POPERUSSELLVILLE, AR$510,400$653,550$789,950$981,700
PRAIRIENON-METRO$510,400$653,550$789,950$981,700
PULASKILITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR$510,400$653,550$789,950$981,700
RANDOLPHNON-METRO$510,400$653,550$789,950$981,700
SALINELITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR$510,400$653,550$789,950$981,700
SCOTTNON-METRO$510,400$653,550$789,950$981,700
SEARCYNON-METRO$510,400$653,550$789,950$981,700
SEBASTIANFORT SMITH, AR-OK$510,400$653,550$789,950$981,700
SEVIERNON-METRO$510,400$653,550$789,950$981,700
SHARPBATESVILLE, AR$510,400$653,550$789,950$981,700
ST. FRANCISFORREST CITY, AR$510,400$653,550$789,950$981,700
STONENON-METRO$510,400$653,550$789,950$981,700
UNIONEL DORADO, AR$510,400$653,550$789,950$981,700
VAN BURENNON-METRO$510,400$653,550$789,950$981,700
WASHINGTONFAYETTEVILLE-SPRINGDALE-ROGERS, AR$510,400$653,550$789,950$981,700
WHITESEARCY, AR$510,400$653,550$789,950$981,700
WOODRUFFNON-METRO$510,400$653,550$789,950$981,700
YELLRUSSELLVILLE, AR$510,400$653,550$789,950$981,700

Arkansas conforming limits can change anytime. Check back often to ensure accuracy.

What factors determine if i’m eligible for a Conventional Loan in Arkansas?

Conventional conforming loans follow the terms and conditions set forth by government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac. To be eligible for a Conforming Loan in Arkansas, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. A FICO credit score of 620 or above is generally required to obtain a conventional loan approval. You must also have enough income to pay your housing costs plus all additional monthly debt.

How much money will I need for the down payment and closing costs?

Conventional home loans require the home buyer to invest between 3% and 20% of the sales price towards the down payment and closing costs. If the sales price is $100,000 for example, the mortgage applicant must invest at least $3,000 – $20,000 to meet conventional mortgage down payment requirements, depending on the program.

Minimum Arkansas Conventional Loan Down Payment:

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary3% Down Payment10% Down Payment
2 Units Primary15% Down Payment25% Down Payment
3 Units Primary25% Down Payment35% Down Payment
4 Units Primary25% Down Payment35% Down Payment
1 Unit Second Home10% Down Payment20% Down Payment
1 Unit Investment15% Down Payment25% Down Payment
2 Units Investment25% Down Payment35% Down Payment
3 Units Investment25% Down Payment35% Down Payment
4 Units Investment25% Down Payment35% Down Payment

What property types are allowed for Conventional Conforming Mortgages?

AR Conforming Loan RequirementsConventional mortgage guidelines allow you to purchase warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can be used to finance primary residences, second homes and investment property.

Learn more about conventional mortgages.

What types of refinance programs do Conventional Loans offer in Arkansas?

There are two main types of conventional refinance loans available in Arkansas:

  • Conventional Rate/Term Refinance: Conventional Rate/Term refinancing loans are for borrowers who currently have an FHA, VA, USDA or conventional fixed rate mortgage or ARM loan and wish to refinance into a conventional mortgage with a lower interest rate. If you’re a homeowners considering a stable, conventional fixed-rate mortgage, this program may also eliminate your mortgage insurance.
  • Cash-Out Refinance: An Conventional Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

What factors determine if I am eligible for a Conventional Refinance Loan?

To meet conventional refinance mortgage requirements in Arkansas, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. You must be able to cover closing costs and have enough income to pay your monthly debt.

Conventional Loan Requirements

More Arkansas Mortgage Limits

You may also want to visit these additional home loan resources before deciding on a mortgage program:

 

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