FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in Arkansas

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Arkansas homebuyers can buy a single-family home and borrow up to $420,680 with a loan backed by the Federal Housing Administration (FHA) in 2022. This is the maximum FHA loan amount for all Arkansas counties, since there are no designated “high-cost areas” in the state.

Arkansas FHA loan limits by county

County nameOne unitTwo unitThree unitFour unitMedian sales price
ARKANSAS$420,680$538,650$651,050$809,150$97,000
ASHLEY$420,680$538,650$651,050$809,150$58,000
BAXTER$420,680$538,650$651,050$809,150$135,000
BENTON$420,680$538,650$651,050$809,150$241,000
BOONE$420,680$538,650$651,050$809,150$134,000
BRADLEY$420,680$538,650$651,050$809,150$60,000
CALHOUN$420,680$538,650$651,050$809,150$69,000
CARROLL$420,680$538,650$651,050$809,150$155,000
CHICOT$420,680$538,650$651,050$809,150$62,000
CLARK$420,680$538,650$651,050$809,150$100,000
CLAY$420,680$538,650$651,050$809,150$90,000
CLEBURNE$420,680$538,650$651,050$809,150$141,000
CLEVELAND$420,680$538,650$651,050$809,150$115,000
COLUMBIA$420,680$538,650$651,050$809,150$104,000
CONWAY$420,680$538,650$651,050$809,150$126,000
CRAIGHEAD$420,680$538,650$651,050$809,150$168,000
CRAWFORD$420,680$538,650$651,050$809,150$145,000
CRITTENDEN$420,680$538,650$651,050$809,150$265,000
CROSS$420,680$538,650$651,050$809,150$97,000
DALLAS$420,680$538,650$651,050$809,150$36,000
DESHA$420,680$538,650$651,050$809,150$60,000
DREW$420,680$538,650$651,050$809,150$116,000
FAULKNER$420,680$538,650$651,050$809,150$180,000
FRANKLIN$420,680$538,650$651,050$809,150$145,000
FULTON$420,680$538,650$651,050$809,150$101,000
GARLAND$420,680$538,650$651,050$809,150$164,000
GRANT$420,680$538,650$651,050$809,150$180,000
GREENE$420,680$538,650$651,050$809,150$131,000
HEMPSTEAD$420,680$538,650$651,050$809,150$78,000
HOT SPRING$420,680$538,650$651,050$809,150$113,000
HOWARD$420,680$538,650$651,050$809,150$73,000
INDEPENDENCE$420,680$538,650$651,050$809,150$109,000
IZARD$420,680$538,650$651,050$809,150$97,000
JACKSON$420,680$538,650$651,050$809,150$78,000
JEFFERSON$420,680$538,650$651,050$809,150$115,000
JOHNSON$420,680$538,650$651,050$809,150$115,000
LAFAYETTE$420,680$538,650$651,050$809,150$59,000
LAWRENCE$420,680$538,650$651,050$809,150$65,000
LEE$420,680$538,650$651,050$809,150$87,000
LINCOLN$420,680$538,650$651,050$809,150$115,000
LITTLE RIVER$420,680$538,650$651,050$809,150$167,000
LOGAN$420,680$538,650$651,050$809,150$116,000
LONOKE$420,680$538,650$651,050$809,150$180,000
MADISON$420,680$538,650$651,050$809,150$241,000
MARION$420,680$538,650$651,050$809,150$141,000
MILLER$420,680$538,650$651,050$809,150$167,000
MISSISSIPPI$420,680$538,650$651,050$809,150$83,000
MONROE$420,680$538,650$651,050$809,150$72,000
MONTGOMERY$420,680$538,650$651,050$809,150$120,000
NEVADA$420,680$538,650$651,050$809,150$78,000
NEWTON$420,680$538,650$651,050$809,150$134,000
OUACHITA$420,680$538,650$651,050$809,150$69,000
PERRY$420,680$538,650$651,050$809,150$180,000
PHILLIPS$420,680$538,650$651,050$809,150$35,000
PIKE$420,680$538,650$651,050$809,150$99,000
POINSETT$420,680$538,650$651,050$809,150$168,000
POLK$420,680$538,650$651,050$809,150$100,000
POPE$420,680$538,650$651,050$809,150$145,000
PRAIRIE$420,680$538,650$651,050$809,150$79,000
PULASKI$420,680$538,650$651,050$809,150$180,000
RANDOLPH$420,680$538,650$651,050$809,150$84,000
SALINE$420,680$538,650$651,050$809,150$180,000
SCOTT$420,680$538,650$651,050$809,150$63,000
SEARCY$420,680$538,650$651,050$809,150$75,000
SEBASTIAN$420,680$538,650$651,050$809,150$145,000
SEVIER$420,680$538,650$651,050$809,150$73,000
SHARP$420,680$538,650$651,050$809,150$109,000
ST. FRANCIS$420,680$538,650$651,050$809,150$55,000
STONE$420,680$538,650$651,050$809,150$141,000
UNION$420,680$538,650$651,050$809,150$105,000
VAN BUREN$420,680$538,650$651,050$809,150$94,000
WASHINGTON$420,680$538,650$651,050$809,150$241,000
WHITE$420,680$538,650$651,050$809,150$130,000
WOODRUFF$420,680$538,650$651,050$809,150$50,000
YELL$420,680$538,650$651,050$809,150$145,000

How are FHA loan limits determined?

The FHA loan limits typically change every year and are based on a percentage of the conforming loan limits published by the Federal Housing Finance Agency (FHFA) for conventional loans. The limits reflect changes in the average U.S. home price over the past year and include limits for “low-cost” areas and more expensive “high-cost” areas.

Here’s how the calculations work:

The low-cost limit or “floor” is $420,680 for a single-family home and is 65% of the national conforming loan limit of $647,200 for 2022. If you’re buying a multifamily home in Arkansas, the low-cost limits increase with each unit:

  • $538,650 for a two-unit home
  • $651,050 for a three-unit home
  • $809,150 for a four-unit home

If you decide to buy outside the state of Arkansas near an expensive part of the country, the high-cost limit is set at 150% of the conforming loan limit, which allows you to borrow up to $970,800 for a single-family home. Also known as the “ceiling,” this amount also provides more borrowing power for multifamily homes in pricier parts of the country.

How to qualify for an FHA loan in Arkansas

FHA loans may be a good choice if your conventional mortgage plans aren’t working out, due to  low credit scores or too much debt compared to your income. With the median home price topping out at $265,000 in the most expensive county in Arkansas (Crittenden), you’ll have plenty of room to borrow with the FHA limit at $420,680.

Here’s a breakdown of the most current requirements to qualify for an FHA loan in Arkansas:

Down payment and credit score. To make the minimum 3.5% down payment, you’ll need at least a 580 credit score. Friends and family members can even pitch in with a gift to help out. It’s possible to get approved for an FHA loan with a score as low as 500 if you can come up with a 10% down payment.

Debt-to-income ratio. FHA lenders measure your total debt compared to your income to calculate your debt-to-income (DTI) ratio. The preferred DTI ratio maximum is 43% DTI ratio, but exceptions may be made with strong credit scores or extra cash reserves.

Mortgage insurance. You’ll pay two types of FHA mortgage insurance to protect lenders in case you default. The first is an upfront mortgage insurance premium (UFMIP) worth 1.75% of your loan amount, which is usually added to your mortgage balance. The other is an annual mortgage insurance premium (MIP) of 0.45% to 1.05% of the loan amount, divided by 12 and added to your monthly payment. One note about FHA mortgage insurance: You’ll pay it regardless of your down payment.

Occupancy. FHA loans are only for buyers who plan to live in the home they purchase. The program doesn’t allow financing on second homes or rental properties.

FHA home appraisals. You’ll need an FHA appraisal for any purchase loan. FHA appraisal guidelines are stricter than conventional loans.

Buying a multifamily home with an FHA loan

Qualified homebuyers can purchase a multifamily home with a 3.5% low down payment and use the rental income to help them qualify (conventional guidelines typically require at least 15% down for multifamily purchases. As long as you plan to live in the home for a year after you buy it, you can use the higher multifamily FHA loan limits to buy a two- to four-unit home. The rent collected from the other units can be added to your qualifying income.

FHA lenders in Arkansas

Lender nameLT ratingMinimum FHA credit score
Zillow Home Loans 7.5/10580
AmeriSave Mortgage8/10600
Lower10/10580
Rocket Mortgage9.5/10580
Fairway Independent Mortgage8/10600

 

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