Loan program
FHA Loans
A helpful option when you need more flexible credit requirements or a smaller down payment.
- Down payment as low as 3.5%
- Credit score as low as 580
- Mortgage insurance required
An FHA loan is a mortgage insured by the Federal Housing Administration, a program created in 1934 to make homeownership possible for more Americans. The FHA doesn't lend the money itself. It insures the loan, so if a borrower defaults, the lender is repaid from the insurance fund.
That backing lets lenders approve buyers who might not qualify for a conventional loan: smaller down payments, lower credit scores, or a thin credit history. For a lot of first-time buyers in Arkansas, it's the program that turns "someday" into "this year."
What makes FHA loans different
As little as 3.5% down
Buy a home with a 3.5% down payment when your credit score is 580 or higher. Down payment assistance programs can often be layered on top.
Flexible credit requirements
Minor credit issues, a limited credit history, or a past bankruptcy don't automatically rule you out.
Gift funds welcome
Your down payment can come from family, an employer, or an approved assistance program.
Affordability guardrails
FHA guidelines target housing costs (principal, interest, taxes, and insurance) at or below 29% of gross income, and total debt at or below 41%.
Who it’s a good fit for
- First-time buyers who haven't saved a large down payment
- Buyers with minor credit issues or little credit history
- Anyone who doesn't quite meet conventional loan standards today
What you'll need to apply
Two years of tax returns and W-2s or 1099s, two months of pay stubs, three months of bank statements, retirement account statements, a government-issued ID, and your Social Security card. If you've had a bankruptcy, bring the discharge paperwork. Our application checklist covers the rest.
Common questions
Does an FHA loan have mortgage insurance?
Yes. FHA loans carry an upfront mortgage insurance premium (which can be rolled into the loan) plus an annual premium paid monthly. On most FHA loans made today it stays for the life of the loan, which is one reason many homeowners later refinance into a conventional loan.
Can I get an FHA loan with a 580 credit score?
FHA guidelines allow a 3.5% down payment at 580 and above. Individual lenders may set their own minimums, which is exactly why having a broker who can shop across lenders helps.
Is an FHA loan only for first-time buyers?
No. Anyone who qualifies can use FHA financing for a primary residence, whether it's your first home or your fifth.
Ready to explore a fha loan?
Tell us a little about your plans and a local loan originator will compare your options across our lender network. It's free, and there's never any pressure.