2024 · Arkansas

How investors finance real estate in Arkansas

In 2024, 6,379 investment-property loans worth $1.1B were originated on single-family 1-4 unit homes in Arkansas. Here's how those terms compared to the rest of the country.

Investor rate premium

138 bps

U.S. median: 88 bps

Denial rate

7.9%

U.S. median: 17.2%

DSCR / business-purpose

65%

U.S. median: 69%

Median LTV

75%

U.S. median: 75%

What the numbers say

Investors in Arkansas borrowed at a median rate of 8%, versus 6.625% for owner-occupants — a 138 bps premium that ranks 2nd of 51 states.

Their applications were denied 7.9% of the time. The leading reasons for denial were debt-to-income ratio, collateral, credit history.

65% of investor loans were business- or commercial-purpose — the category that includes DSCR and LLC-held loans — and 5% were cash-out refinances. The typical loan-to-value was 75%, implying about 25% down.

ProInvestorHubInvestor rate premium: Arkansas vs the nationExtra basis points investors pay over owner-occupantsArkansas138 bpsU.S. median88 bpsHighest (Mississippi)163 bpsSource: CFPB HMDA 2024 · proinvestorhub.comProInvestorHub

Frequently asked questions

How much more do investors pay for a mortgage in Arkansas?

In 2024, the median investment-property loan in Arkansas carried a rate of 8% versus 6.625% for an owner-occupant — a premium of 138 bps. That ranks 2nd of 51 states (1 = highest premium).

What share of investor loan applications are denied in Arkansas?

7.9% of investment-property applications were denied in Arkansas in 2024, the 48th-highest denial rate among the 51 states. The most common denial reasons were debt-to-income ratio, collateral, credit history.

How common are DSCR and business-purpose investor loans in Arkansas?

65% of investor loans in Arkansas were flagged as primarily business or commercial purpose — the bucket that includes DSCR and LLC-held loans (34th of 51). The median loan-to-value was 75%.

Source: CFPB / FFIEC HMDA Data Browser (loan-level public dataset), 2024. Single-family 1-4 unit, site-built loans; financed purchases only.