Mortgage lender closing cost rankings in Arkansas (2025)

Arkansas uses a non-judicial foreclosure process primarily through the power-of-sale clause in deeds of trust, though judicial foreclosure is also available. The state uses deeds of trust rather than mortgages as the standard security instrument. Arkansas is not an attorney-closing state; title companies and escrow agents may handle closings without attorney involvement, though attorneys are often engaged. The state imposes a real property transfer tax of $3.30 per $1,000 of consideration, typically paid by the seller. Title insurance rates in Arkansas operate under a file-and-use system, meaning insurers file rates with the state Insurance Department before use. Arkansas does not have a statutory ban on prepayment penalties for conventional mortgages, though federal rules govern most loan types. The Arkansas Securities Department oversees mortgage lender licensing. The state's usury ceiling has historically applied to certain loan categories, but federal preemption limits its practical reach on most first-lien residential mortgages.

Conventional loans dominate Arkansas purchase originations, accounting for 55.3% of volume (14,280 loans) at a median rate of 6.625% and median costs of $3,813 — the lowest cost profile of any loan type in the state. FHA loans represent a notable 25.5% share (6,598 loans), reflecting Arkansas's relatively moderate home prices and buyer income levels that push many borrowers toward government-backed options. VA loans account for 13.2% of originations (3,416 loans), supported by military installations including Little Rock Air Force Base. USDA loans make up 6.0% (1,537 loans), a meaningful share driven by Arkansas's substantial rural population and eligible rural areas.