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$424,100$543,000$656,350$815,650
ASHLEYNON-METRO$424,100$543,000$656,350$815,650
BAXTERMOUNTAIN HOME, AR$424,100$543,000$656,350$815,650
BENTONFAYETTEVILLE-SPRINGDALE-ROGERS, AR-MO$424,100$543,000$656,350$815,650
BOONEHARRISON, AR$424,100$543,000$656,350$815,650
BRADLEYNON-METRO$424,100$543,000$656,350$815,650
CALHOUNCAMDEN, AR$424,100$543,000$656,350$815,650
CARROLLNON-METRO$424,100$543,000$656,350$815,650
CHICOTNON-METRO$424,100$543,000$656,350$815,650
CLARKARKADELPHIA, AR$424,100$543,000$656,350$815,650
CLAYNON-METRO$424,100$543,000$656,350$815,650
CLEBURNENON-METRO$424,100$543,000$656,350$815,650
CLEVELANDPINE BLUFF, AR$424,100$543,000$656,350$815,650
COLUMBIAMAGNOLIA, AR$424,100$543,000$656,350$815,650
CONWAYNON-METRO$424,100$543,000$656,350$815,650
CRAIGHEADJONESBORO, AR$424,100$543,000$656,350$815,650
CRAWFORDFORT SMITH, AR-OK$424,100$543,000$656,350$815,650
CRITTENDENMEMPHIS, TN-MS-AR$424,100$543,000$656,350$815,650
CROSSNON-METRO$424,100$543,000$656,350$815,650
DALLASNON-METRO$424,100$543,000$656,350$815,650
DESHANON-METRO$424,100$543,000$656,350$815,650
DREWNON-METRO$424,100$543,000$656,350$815,650
FAULKNERLITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR$424,100$543,000$656,350$815,650
FRANKLINNON-METRO$424,100$543,000$656,350$815,650
FULTONNON-METRO$424,100$543,000$656,350$815,650
GARLANDHOT SPRINGS, AR$424,100$543,000$656,350$815,650
GRANTLITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR$424,100$543,000$656,350$815,650
GREENEPARAGOULD, AR$424,100$543,000$656,350$815,650
HEMPSTEADNON-METRO$424,100$543,000$656,350$815,650
HOT SPRINGMALVERN, AR$424,100$543,000$656,350$815,650
HOWARDNON-METRO$424,100$543,000$656,350$815,650
INDEPENDENCEBATESVILLE, AR$424,100$543,000$656,350$815,650
IZARDNON-METRO$424,100$543,000$656,350$815,650
JACKSONNON-METRO$424,100$543,000$656,350$815,650
JEFFERSONPINE BLUFF, AR$424,100$543,000$656,350$815,650
JOHNSONNON-METRO$424,100$543,000$656,350$815,650
LAFAYETTENON-METRO$424,100$543,000$656,350$815,650
LAWRENCENON-METRO$424,100$543,000$656,350$815,650
LEENON-METRO$424,100$543,000$656,350$815,650
LINCOLNPINE BLUFF, AR$424,100$543,000$656,350$815,650
LITTLE RIVERTEXARKANA, TX-AR$424,100$543,000$656,350$815,650
LOGANNON-METRO$424,100$543,000$656,350$815,650
LONOKELITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR$424,100$543,000$656,350$815,650
MADISONFAYETTEVILLE-SPRINGDALE-ROGERS, AR-MO$424,100$543,000$656,350$815,650
MARIONNON-METRO$424,100$543,000$656,350$815,650
MILLERTEXARKANA, TX-AR$424,100$543,000$656,350$815,650
MISSISSIPPIBLYTHEVILLE, AR$424,100$543,000$656,350$815,650
MONROENON-METRO$424,100$543,000$656,350$815,650
MONTGOMERYNON-METRO$424,100$543,000$656,350$815,650
NEVADANON-METRO$424,100$543,000$656,350$815,650
NEWTONHARRISON, AR$424,100$543,000$656,350$815,650
OUACHITACAMDEN, AR$424,100$543,000$656,350$815,650
PERRYLITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR$424,100$543,000$656,350$815,650
PHILLIPSHELENA-WEST HELENA, AR$424,100$543,000$656,350$815,650
PIKENON-METRO$424,100$543,000$656,350$815,650
POINSETTJONESBORO, AR$424,100$543,000$656,350$815,650
POLKNON-METRO$424,100$543,000$656,350$815,650
POPERUSSELLVILLE, AR$424,100$543,000$656,350$815,650
PRAIRIENON-METRO$424,100$543,000$656,350$815,650
PULASKILITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR$424,100$543,000$656,350$815,650
RANDOLPHNON-METRO$424,100$543,000$656,350$815,650
SALINELITTLE ROCK-NORTH LITTLE ROCK-CONWAY, AR$424,100$543,000$656,350$815,650
SCOTTNON-METRO$424,100$543,000$656,350$815,650
SEARCYNON-METRO$424,100$543,000$656,350$815,650
SEBASTIANFORT SMITH, AR-OK$424,100$543,000$656,350$815,650
SEVIERNON-METRO$424,100$543,000$656,350$815,650
SHARPNON-METRO$424,100$543,000$656,350$815,650
ST. FRANCISFORREST CITY, AR$424,100$543,000$656,350$815,650
STONENON-METRO$424,100$543,000$656,350$815,650
UNIONEL DORADO, AR$424,100$543,000$656,350$815,650
VAN BURENNON-METRO$424,100$543,000$656,350$815,650
WASHINGTONFAYETTEVILLE-SPRINGDALE-ROGERS, AR-MO$424,100$543,000$656,350$815,650
WHITESEARCY, AR$424,100$543,000$656,350$815,650
WOODRUFFNON-METRO$424,100$543,000$656,350$815,650
YELLRUSSELLVILLE, AR$424,100$543,000$656,350$815,650

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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