Arkansas USDA Loans

What are Arkansas USDA Loans?

USDA stands for United States Department of Agriculture. A USDA Mortgage from Arkansas Rural Development gives borrowers a low-cost insured home mortgage loan that suits a variety of options. A USDA mortgage is likely the best home loan option if you want to purchase a home with no down payment. If you’re unsure about your credit rating, or have concerns about a down payment when you’re doing a home loan comparison, USDA Rural Mortgage Loans can give you piece of mind with zero-down, super low closing costs and low monthly mortgage insurance.

What Types of Loans does USDA offer in Arkansas?

Currently, there are two kinds of USDA Home Loans available in Arkansas for single family households:

. USDA Guaranteed Rural Housing Loans
USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loan in Arkansas and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate.

. USDA Direct Rural Housing Loans
USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I am eligible for an Arkansas Rural Development Loan?

To be eligible for A USDA Rural 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 (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Rural Housing Loan approval through most lenders. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

What is the maximum amount that I can borrow?

The maximum amount for an USDA home loan is determined by:

Maximum Loan Amount: The is no set maximum loan amount allowed for USDA Rural Home Loans. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).

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

USDA Rural Development Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).

hat property types are allowed for USDA Rural Loans?

While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

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Arkansas USDA Loan Adjusted Maximum Income Limits by County
Updated 05/01/2012

County Name
1-4 Person Households
(Guaranteed Loans)
5-8 Person Households 
(Guaranteed Loans)
ARKANSAS
NON-METRO
$73,600
$97,150
ASHLEY
$73,600
$97,150
NON-METRO
BAXTER
$73,600
$97,150
MOUNTAIN HOME, AR (MICRO)
BENTON
$73,600
$97,150
FAYETTEVILLE-SPRINGDALE-ROGERS, AR-MO (MSA)
BOONE
$73,600
$97,150
HARRISON, AR (MICRO)
BRADLEY
$73,600
$97,150
NON-METRO
CALHOUN
$73,600
$97,150
CAMDEN, AR (MICRO)
CARROLL
$73,600
$97,150
NON-METRO
CHICOT
$73,600
$97,150
NON-METRO
CLARK
$73,600
$97,150
ARKADELPHIA, AR (MICRO)
CLAY
$73,600
$97,150
NON-METRO
CLEBURNE
$73,600
$97,150
NON-METRO
CLEVELAND
$73,600
$97,150
PINE BLUFF, AR (MSA)
COLUMBIA
$73,600
$97,150
MAGNOLIA, AR (MICRO)
CONWAY
$73,600
$97,150
NON-METRO
CRAIGHEAD
$73,600
$97,150
JONESBORO, AR (MSA)
CRAWFORD
$73,600
$97,150
FORT SMITH, AR-OK (MSA)
CRITTENDEN
$73,600
$97,150
MEMPHIS, TN-MS-AR (MSA)
CROSS
$73,600
$97,150
NON-METRO
DALLAS
$73,600
$97,150
NON-METRO
DESHA
$73,600
$97,150
NON-METRO
DREW
$73,600
$97,150
NON-METRO
FAULKNER
$73,600
$97,150
LITTLE ROCK-NORTH LITTLE ROCK, AR (MSA)
FRANKLIN
$73,600
$97,150
FORT SMITH, AR-OK (MSA)
FULTON
$73,600
$97,150
NON-METRO
GARLAND
$73,600
$97,150
HOT SPRINGS, AR (MSA)
GRANT
$73,600
$97,150
LITTLE ROCK-NORTH LITTLE ROCK, AR (MSA)
GREENE
$73,600
$97,150
PARAGOULD, AR (MICRO)
HEMPSTEAD
$73,600
$97,150
HOPE, AR (MICRO)
HOT SPRING
$73,600
$97,150
NON-METRO
HOWARD
$73,600
$97,150
NON-METRO
INDEPENDENCE
$73,600
$97,150
BATESVILLE, AR (MICRO)
IZARD
$73,600
$97,150
NON-METRO
JACKSON
$73,600
$97,150
NON-METRO
JEFFERSON
$73,600
$97,150
PINE BLUFF, AR (MSA)
JOHNSON
$73,600
$97,150
NON-METRO
LAFAYETTE
$73,600
$97,150
NON-METRO
LAWRENCE
$73,600
$97,150
NON-METRO
LEE
$73,600
$97,150
NON-METRO
LINCOLN
$73,600
$97,150
PINE BLUFF, AR (MSA)
LITTLE RIVER
$73,600
$97,150
NON-METRO
LOGAN
$73,600
$97,150
NON-METRO
LONOKE
$73,600
$97,150
LITTLE ROCK-NORTH LITTLE ROCK, AR (MSA)
MADISON
$73,600
$97,150
FAYETTEVILLE-SPRINGDALE-ROGERS, AR-MO (MSA)
MARION
$73,600
$97,150
NON-METRO
MILLER
$73,600
$97,150
TEXARKANA, TX-TEXARKANA, AR (MSA)
MISSISSIPPI
$73,600
$97,150
BLYTHEVILLE, AR (MICRO)
MONROE
$73,600
$97,150
NON-METRO
MONTGOMERY
$73,600
$97,150
NON-METRO
NEVADA
$73,600
$97,150
HOPE, AR (MICRO)
NEWTON
$73,600
$97,150
HARRISON, AR (MICRO)
OUACHITA
$73,600
$97,150
CAMDEN, AR (MICRO)
PERRY
$73,600
$97,150
LITTLE ROCK-NORTH LITTLE ROCK, AR (MSA)
PHILLIPS
$73,600
$97,150
WEST HELENA, AR (MICRO)
PIKE
$73,600
$97,150
NON-METRO
POINSETT
$73,600
$97,150
JONESBORO, AR (MSA)
POLK
$73,600
$97,150
NON-METRO
POPE
$73,600
$97,150
RUSSELLVILLE, AR (MICRO)
PRAIRIE
$73,600
$97,150
NON-METRO
PULASKI
$73,600
$97,150
LITTLE ROCK-NORTH LITTLE ROCK, AR (MSA)
RANDOLPH
$73,600
$97,150
NON-METRO
SALINE
$73,600
$97,150
LITTLE ROCK-NORTH LITTLE ROCK, AR (MSA)
SCOTT
$73,600
$97,150
NON-METRO
SEARCY
$73,600
$97,150
NON-METRO
SEBASTIAN
$73,600
$97,150
FORT SMITH, AR-OK (MSA)
SEVIER
$73,600
$97,150
NON-METRO
SHARP
$73,600
$97,150
NON-METRO
ST. FRANCIS
$73,600
$97,150
FORREST CITY, AR (MICRO)
STONE
$73,600
$97,150
NON-METRO
UNION
$73,600
$97,150
EL DORADO, AR (MICRO)
VAN BUREN
$73,600
$97,150
NON-METRO
WASHINGTON
$73,600
$97,150
FAYETTEVILLE-SPRINGDALE-ROGERS, AR-MO (MSA)
WHITE
$73,600
$97,150
SEARCY, AR (MICRO)
WOODRUFF
$73,600
$97,150
NON-METRO
YELL
$73,600
$97,150
RUSSELLVILLE, AR (MICRO)

 USDA Loan information for Arkansas’s top cities:

Little Rock Arkansas USDA LoansFort Smith Arkansas USDA LoansNorth Little Rock Arkansas USDA Loans
Fayetteville Arkansas USDA LoansJonesboro Arkansas USDA LoansPine Bluff Arkansas USDA Loans
Springdale Arkansas USDA LoansConway Arkansas USDA LoansRogers Arkansas USDA Loans
Hot Springs Arkansas USDA LoansJacksonville Arkansas USDA LoansWest Memphis Arkansas USDA Loans
Texarkana Arkansas USDA LoansRussellville Arkansas USDA LoansParaguold Arkansas USDA Loans
Benton Arkansas USDA LoansEl Dorado Arkansas USDA LoansSherwood Arkansas USDA Loans
Bentonville Arkansas USDA LoansVan Buren Arkansas USDA LoansSearcy Arkansas USDA Loans

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