Little Rock Mortgage Facts: 2026 Loan Limits, Programs and Arkansas Rules

The short version: For 2026, Pulaski County sits at the national baseline on every major limit — conforming $832,750 (FHFA), FHA 1-unit $541,287 (HUD Mortgagee Letter 2025-23) — and VA loans carry no limit at all for borrowers with full entitlement. USDA’s Guaranteed program has income limits but no loan limit, and its eligibility map excludes Little Rock proper. Arkansas adds its own layer: ADFA programs, a 20% property assessment ratio, a homestead credit of $500 rising to $600 on 2026 tax bills, and a 17% constitutional usury cap that does not bind banks. Every figure below names its source; this page deliberately publishes no interest rates.

Key facts

Measure	Figure
2026 conforming loan limit, Pulaski County (1-unit)	$832,750 — the national baseline
2026 FHA loan limit, Pulaski County (1-unit)	$541,287
VA loan limit (full entitlement)	None
VA funding fee, first use, under 5% down	2.15% of the loan amount
USDA Guaranteed income limit, Pulaski County (1–4 person)	$122,800
ADFA down payment assistance	Repayable second mortgage, $1,000–$15,000
Arkansas property assessment ratio	20% of market value
Arkansas homestead tax credit	Up to $500 now; up to $600 beginning with 2026 tax bills (payable 2027)

2026 loan limits

Program	Pulaski County limit	Source
Conforming (Fannie Mae / Freddie Mac), 1-unit	$832,750	FHFA news release, “FHFA Announces Conforming Loan Limit Values for 2026,” Nov 25, 2025
FHA, 1-unit	$541,287	HUD Mortgagee Letter 2025-23 (Dec 11, 2025); limits apply to case numbers assigned on or after Jan 1, 2026
VA	No limit with full entitlement	VA.gov, “VA home loan entitlement and limits”
USDA Guaranteed (Section 502)	No loan limit — borrowers qualify by income and repayment ability	USDA program rules (HB-1-3555)

Two points that are widely gotten wrong. First, Pulaski County is not a high-cost area: its conforming limit is the FHFA baseline, not the $1,249,125 high-cost ceiling, and its FHA limit equals the national FHA floor (65% of the conforming baseline) — every Arkansas county sits at that floor for 2026. Second, borrowers with partial or remaining VA entitlement are measured against the county conforming limit, and most lenders then require entitlement plus down payment to cover at least 25% of the loan (per VA.gov).

VA funding fee — purchase and construction loans

The funding fee is a one-time charge calculated on the loan amount (not the purchase price); it may be paid at closing or financed into the loan. Chart effective April 7, 2023, as published by VA.gov:

Down payment	First use	Subsequent use
Less than 5%	2.15%	3.30%
5% to 9.99%	1.50%	1.50%
10% or more	1.25%	1.25%

Cash-out refinance: 2.15% first use / 3.30% subsequent (no down-payment tiers). IRRRL and loan assumptions: 0.50%. Exempt from the fee: veterans receiving VA compensation for a service-connected disability; those eligible for compensation but receiving retirement or active-duty pay instead; surviving spouses receiving DIC; members with a proposed or memorandum rating from a pre-discharge claim; and active-duty Purple Heart recipients. A fee paid before a retroactive disability award effective before closing may be refunded. Note: pages still showing a 2.3% first-use fee are citing the Blue Water Navy Act rate that expired April 7, 2023. Source: VA.gov, “VA funding fee and loan closing costs.”

USDA — income limits, and the loan-limit trap

Item	Figure	Source
Income limit, Pulaski County, households of 1–4	$122,800	USDA FY2026 limits, effective July 13, 2026
Income limit, Pulaski County, households of 5–8	$162,100	USDA FY2026 limits, effective July 13, 2026
Upfront guarantee fee / annual fee	1% / 0.35%	USDA Section 502 Guaranteed program terms
Guaranteed-program loan limit	None	USDA program rules (HB-1-3555)

Household income is counted for all adult household members, not just the borrowers, with permitted deductions (dependents, childcare, disability, elderly). And the trap: a “USDA loan limit” of $433,020 for Pulaski County circulates on loan-limit websites — that figure belongs to the separate Section 502 Direct program. The Guaranteed program most buyers use has no county loan limit and no maximum purchase price. Separately, the property must sit in a USDA-eligible area: Little Rock proper is not eligible, and eligibility is decided address by address, concentrated on the county’s rural fringe and outlying communities.

ADFA — Arkansas’s own programs

Program	Terms as published	Source
Move-Up (first mortgage)	30-year fixed (FHA, VA, USDA or conventional); first-time-buyer status not required; minimum median credit score 640; maximum DTI 45%; qualifying income limit $142,000 per guideline summaries revised June 2026 — confirm the current limit with your lender	ADFA program guidelines (rev. June 2026), as summarized by participating lenders
Down Payment Assistance	Repayable second mortgage of $1,000–$15,000, 10-year amortization, at the same interest rate as the ADFA first mortgage; covers down payment and closing costs; not usable for repairs or paying off debt; no prepayment penalty; must be paired with an ADFA first mortgage	ADFA Program Guidelines, “ADFA Subordinate Repayable Mortgage Loan,” Nov 6, 2024
Mortgage Credit Certificate (MCC)	Federal income tax credit of up to 35% of mortgage interest paid per year, capped at $2,000 annually, for qualifying first-time buyers — a dollar-for-dollar credit against tax owed, not a deduction	ADFA’s program description, as quoted by The Mortgage Reports
Move-Up Choice (optional add-on)	Exists as an optional add-on to Move-Up that trades a higher first-mortgage rate for cash-to-close assistance; confirm current terms with an ADFA-approved lender before relying on specifics	Secondary program descriptions; ADFA’s current page text not machine-verified in this pass

All ADFA mortgages are made only through ADFA-approved lenders, and homebuyer education is required on the first-mortgage programs. The single most important line in this table is the DPA’s: it is a repayable loan with monthly payments — not a grant, and not forgivable — per ADFA’s own guidelines.

Arkansas rules

Rule	Fact	Source
Assessment ratio	Real property is assessed at 20% of true/full market value	Ark. Const. Art. 16, § 5; Ark. Code Ann. § 26-26-303; Assessment Coordination Division rules
Homestead credit	Up to $500 per year now; the General Assembly has authorized up to $600 beginning with the 2026 tax bills — the bills payable in 2027	Arkansas DFA, Assessment Coordination Division, “Property Tax Relief”
Usury cap	Amendment 89, § 3 caps interest at 17% per annum on loans outside its Sections 1–2; Section 2 covers loans by federally insured depository institutions under federal rate parity (12 U.S.C. § 1831u), so the cap does not bind banks the way it binds non-depository lenders	Arkansas Constitution, Amendment 89 (adopted Nov 2010; upheld June 23, 2011)
The 15% proposal	HB 1912 (2025) proposed cutting the assessment ratio to 15% for assessment years beginning January 1, 2026. It died in House committee at sine die adjournment (May 5, 2025). The 20% ratio remains the law — do not plan around 15%	DFA Fiscal Impact Statement for HB1912 (Apr 1, 2025); committee record

Homestead mechanics (DFA): the credit applies to the principal residence (trust ownership allowed), one credit per homeowner per year, applied for with the county assessor by October 15. Homeowners 65+ or disabled may also qualify to have their homestead’s taxable assessed value frozen under Amendment 79, subject to millage changes and additions.

FHA 203(k) rehabilitation loans

Feature	Limited 203(k)	Standard 203(k)
Work allowed	Non-structural / minor only	Major and structural work allowed
Cost limits	Total rehabilitation cost capped at $75,000	Minimum $5,000 in repairs; no fixed cap beyond the county FHA limit
Consultant	Not required (optional)	HUD-approved 203(k) Consultant required
Completion window	9 months	12 months

Both versions: the home must be at least one year old; one loan covers purchase (or refinance) plus rehabilitation; repair funds are escrowed and released as work is completed; the loan is underwritten on the after-improved value; owner-occupancy is required and work must be performed by licensed contractors. The $75,000 Limited cap took effect in HUD Mortgagee Letter 2024-13 for case numbers assigned on or after November 4, 2024 (raised from $35,000 — pages still citing $35,000 are pre-November 2024).

The limits in context

What do these limits mean against actual Little Rock prices? Median sale prices (Homes.com, trailing 12 months, pulled October 2026) in the neighborhoods our verified loan officer serves — Chenal Valley (~$511,000), Hillcrest ($285,000), Pleasant Valley ($395,000) and The Heights ($655,000) — all sit under the $832,750 conforming limit at the median, and all but The Heights’ median sit under the $541,287 FHA limit as well. Loan limits are rarely the binding constraint in this market; property condition on older homes, program eligibility by address, and cash-to-close are. Our companion buyer’s guide, Financing a Home in Little Rock, walks through how those pieces fit together.

The verified loan officer behind these numbers

Figures are only useful if the person applying them is who they claim to be. A loan officer’s license is public: our guide to how to verify a loan officer’s license shows the NMLS lookup step by step. Neighborhood Registry checks the loan officer for each neighborhood directly against the licensing record — for Chenal Valley, Hillcrest, Pleasant Valley and The Heights, that is Zack Lovett of Primary Residential Mortgage, Inc., NMLS #129506, whose license was independently verified on August 26, 2026. See the Registry’s Little Rock page for the full verified team.

Frequently asked questions

What is the 2026 conforming loan limit in Pulaski County?

$832,750 for a one-unit home — the national baseline. According to FHFA’s November 25, 2025 release, the baseline rose $26,250 for 2026; Pulaski County is not a designated high-cost area, so the $1,249,125 high-cost ceiling does not apply here.

What is the 2026 FHA loan limit in Little Rock?

$541,287 for a one-unit home in Pulaski County, according to HUD Mortgagee Letter 2025-23 — equal to the national FHA floor, as in every Arkansas county for 2026. (One national site prints $541,288; HUD’s letter and the county tables use $541,287.)

How much is the VA funding fee?

Per VA.gov’s chart effective April 7, 2023: 2.15% of the loan amount for first use with less than 5% down, 3.30% for subsequent use; 1.50% at 5–9.99% down; 1.25% at 10% or more down. Veterans receiving compensation for a service-connected disability, and several other categories, are exempt.

Is ADFA down payment assistance free money?

No. Per ADFA’s own program guidelines, it is a repayable second mortgage of $1,000 to $15,000, amortized over 10 years at the same interest rate as the ADFA first mortgage, with monthly payments and no prepayment penalty. Pages calling it a grant or forgivable are wrong.

How is Arkansas property tax calculated on a home?

Arkansas assesses real property at 20% of market value, then applies the local millage. Homeowners also receive a homestead credit of up to $500 per year on their principal residence, rising to up to $600 beginning with the 2026 tax bills (payable in 2027), per the Arkansas DFA.

Sources are named inline throughout; figures are as published by each source on the dates noted, and this page is reviewed against its sources as new data publishes.