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Arkansas Mortgage and Refinance Rates
Current mortgage rates in Arkansas
As of Friday, February 21, 2025, current Arkansas mortgage rates are 0.00% for a 30-year fixed mortgage and 0.00% for a 15-year fixed mortgage.
In line with national trends, mortgage rates in Arkansas have been steadily increasing, and could stay elevated in 2025.
Refinance rates in Arkansas
Refinance rates are now much higher than the rock-bottom levels of the past few years. Still, you might consider a cash-out refinance on your Arkansas home to pay for renovations or other expenses.
Arkansas mortgage rate trends
Mortgages in Arkansas cost more now than they have in recent years, closer to the national historical average. As of December 2024, the median home sale price in the state was $255,800, according to Redfin.
National mortgage rates by loan type
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 6.90% | 6.94% |
| 15-Year Fixed Rate | 6.19% | 6.26% |
| 5-1 ARM | 6.20% | 6.95% |
| 30-Year Fixed Rate FHA | 6.87% | 6.92% |
| 30-Year Fixed Rate VA | 6.67% | 6.72% |
| 30-Year Fixed Rate Jumbo | 7.02% | 7.08% |
Rates as of Friday, February 21, 2025 at 6:30 AM
Mortgage statistics for Arkansas
Arkansas offers more affordable homes compared to the national median sale price of $406,100. Here are more statistics about housing in the state:
- Most affordable counties, Dec. 2024: Arkansas, Ashley, Chicot, Columbia, Dallas, Desha, Hempstead, Jackson, Ouachita, Phillips, St. Francis and Woodruff
- Median sales price, Dec. 2024: $255,800
- Median down payment, Oct. 2024: $30,000
Sources: ATTOM, Redfin
Mortgage options in Arkansas
Like elsewhere in the U.S., there’s a variety of mortgage options in Arkansas to suit a range of needs and financial circumstances. Here are some of the most common:
- Arkansas conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no more than 45 percent. With a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
- Arkansas FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for an FHA loan with a credit score as low as 580.
- Arkansas VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent.
- Arkansas USDA loans: If you’re buying a rural property in Arkansas, you might be eligible for a mortgage guaranteed by the U.S. Department of Agriculture (USDA). USDA loans don’t require a down payment, but you’ll need to purchase in a designated rural area and meet the area’s income limits.
First-time homebuyer programs in Arkansas
If you’re an eligible first-time homebuyer in Arkansas, you might qualify for a lower-cost mortgage or down payment assistance. Many of these programs are facilitated by the Arkansas Development Finance Authority (ADFA).
StartSmart Mortgage Loan program: First-time homebuyers in Arkansas can apply for a StartSmart mortgage, which comes with a below-market interest rate in the form of an FHA, VA or rural development (USDA) loan. Applicants can’t exceed maximum income limits and must buy a property at or below $425,000.
Move-Up program
The ADFA works with participating lenders to connect homebuyers with an affordable mortgage through its Move-Up program, offering either a conventional, FHA, VA or USDA loan for buyers of single-family homes, with a 30-year fixed rate.
Down payment and closing cost assistance
The ADFA administers down payment assistance for those participating in the StartSmart or Move-Up program. This assistance offers qualifying, low- to moderate-income applicants up to $15,000 in closing cost assistance as a second mortgage with a 10-year term.
Mortgage credit certificate (MCC)
If you’re a low- or moderate-income homebuyer with an ADFA mortgage, you might be interested in a mortgage credit certificate (MCC), which converts a portion of the mortgage interest you pay into a non-refundable federal tax credit. The maximum credit per year is $2,000, which can be claimed for the life of the loan so long as you stay in the home.
Among the eligibility criteria, you’ll need to be a first-time homebuyer or a veteran or veteran’s spouse, or purchasing a home in a targeted county (which includes Crawford County, Jefferson County and White County). You’ll also need to work with an ADFA-approved lender, and minimum credit score, household income limits and a home purchase price limit of $300,000 apply.
Jonesboro Homeownership Assistance Program
The Jonesboro Homeownership Assistance program is designed to help low- to moderate-income first-time homebuyers purchase homes within the city limits of Jonesboro, Arkansas. Through the program, applicants can receive a grant to help with the down payment and closing costs. Once approved, the funds are paid directly to the title company.
The home purchased must meet HUD Housing Quality Standards, and the household must meet the federal income guidelines. Applicants must complete a HUD-approved homebuyer education course, as well.
How to find the best mortgage rate in Arkansas
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Step 1: Strengthen your credit score
Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
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Step 2: Determine your budget
To find the right mortgage, you’ll need a good handle on how much house you can afford.
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Step 3: Know your mortgage options
There are a few different types of mortgages.
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Step 4: Compare rates and terms from several lenders
Rate-shop with at least three different banks or mortgage companies.
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Step 5: Get preapproved for a mortgage
Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.
Additional Arkansas mortgage resources
- Arkansas loan limits by county: Learn the conforming and FHA loan limits for your county.
- Arkansas mortgage lenders: Explore mortgage lenders in your state.
- Arkansas homeowners insurance: Compare policies from a variety of providers.
Meet our Bankrate experts
Written by: Andrew Dehan, Writer, Home Lending
I’ve covered mortgages, real estate and personal finance since 2020. At Bankrate, I’m focused on all of the factors that affect mortgage rates and home equity. I enjoy distilling data and expert advice into takeaways borrowers can use. Prior to Bankrate, I wrote and edited for Rocket Mortgage/Quicken Loans. My work has been published by Business Insider, Forbes Advisor, SmartAsset, Crain’s Business and more.
Edited by: Laurie Richards, Editor, Home Lending
I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English.