Arkansas investors search for DSCR loans more than for hard money, and the state rewards landlords with some of the lowest property taxes in the South. But Arkansas's two main markets run on different logic. In Northwest Arkansas, a flip competes with homebuilders offering buyers incentives and rate buy-downs. In Little Rock and the rest of the state, the question is whether the after-repair value clears the lender's floor. Here is how to underwrite both.
Arkansas assesses all real property at 20 percent of its market value, a ratio set in the state constitution, and the local millage is applied to that. Amendment 79 then limits how fast the taxable value can climb after a county reappraisal: 5 percent a year for a homestead and 10 percent a year for everything else, including rentals, until the value catches up with the new appraisal. The limits do not apply to new construction or substantial improvements.
The homeowner's advantages don't pass to an investor. The Amendment 79 homestead tax credit, which reaches $600 on 2026 tax bills, requires the owner to live in the home as a principal residence. A rental gets the 10 percent cap instead of the 5 percent one, and no credit. A heavy renovation can also count as a substantial improvement, which lets the assessor add value outside the cap. Before closing, ask the county assessor how the property will be assessed once you own it, rather than relying on the seller's bill.
Arkansas also charges a real property transfer tax of $3.30 per $1,000 of the price when a deed is recorded. On a flip, that belongs in the closing budget on both ends of the deal.
Bentonville, Rogers, Springdale and Fayetteville are the state's fastest-growing investor market, and prices reflect it. The Skyline Report for the first half of 2026 put the average sale price at $465,888 in Benton County, down 1.2 percent, and $423,750 in Washington County, up 1.5 percent, both about 40 to 50 percent higher than five years earlier. The same report described a buyer's market.
The reason matters to a flipper. Large homebuilders have been offering incentives and mortgage rate buy-downs to move new houses, and new construction made up a large share of recent sales. A renovated 1990s house in Rogers is competing against a brand-new one down the road with a lower effective interest rate for the buyer. Price the after-repair value against those new-build deals, not just against other resales, and budget a longer sale than the region's boom years would suggest.
For buy-and-hold investors, the same growth is the opportunity. Employment around the region's large employers keeps rental demand steady, which is where a DSCR loan does its work.
Central Arkansas, around Little Rock, North Little Rock, Conway and Benton, is the state's other large market, with far lower prices than the northwest. That makes the lender's floor the first thing to check. Our lending partner's guidelines require an after-repair value of at least $100,000 and look for properties within roughly 45 minutes to an hour of a metro area of at least 200,000 people. Little Rock and Northwest Arkansas clearly qualify; Fort Smith and Jonesboro deals need a closer look, and much of rural Arkansas falls outside the program however cheap the purchase.
Arkansas has long been known as one of the most landlord-friendly states. Since 2021 it has had statutory minimum habitability standards covering basics such as water, heat, electricity and a sound structure, so budget a rental renovation to meet them from the start.
A DSCR loan qualifies the property rather than your personal income: the rent must cover the payment, including principal, interest, taxes and insurance. Our lending partners' DSCR rental program starts at rates as low as 5.99 percent, with origination points from 1.5 percent, loan amounts from $75,000 to $2 million at up to 80 percent of value, and no minimum credit score. Cross-collateral loans are allowed across two or more properties, and portfolio loans are considered case by case. Your rate depends on the rent coverage and the rest of the file.
Arkansas is friendly territory for this loan. With property assessed at 20 percent of value and increases capped at 10 percent a year on rentals, the tax line is modest and predictable. The numbers to watch are insurance, since central and northwest Arkansas both see severe storms and hail, and the $75,000 minimum loan, which rules out the smallest rentals.
Arkansas is one of the states where our lending partners pay placement fees, and none of its counties is on the lender's restricted list. The published fix-and-flip and bridge programs lend up to 100 percent of cost and 70 percent of the after-repair value, with a minimum loan of $50,000, a minimum credit score of 600, and loans of up to twelve months; the lender's underwriting guidelines set a nine-month standard term, with extensions considered case by case. The published starting rate is 10.99 percent plus 1.99 origination points.
The 10.99 percent starting rate is available after two loans have been paid off in good standing with our lending partner; a first-time borrower should expect to start above it and earn the way down.
The guidelines also cap the renovation budget at $40,000 for a borrower with zero or one completed project, and look for at least $15,000 in reserves. A Springdale example: a house worth $320,000 after renovation supports up to $224,000 at 70 percent. If purchase and renovation cost $240,000 together, the investor brings about $16,000 plus closing costs, the transfer tax and reserves.
1. In Northwest Arkansas, price against new construction. Builders' incentives set the bar your flip has to beat.
2. Check the after-repair value clears $100,000, and that the property is within reach of Little Rock or Northwest Arkansas.
3. Ask the assessor how the property will be assessed after you buy. No homestead credit, a 10 percent cap, and possible reassessment after a big renovation.
4. Add the transfer tax on the purchase and on the sale.
5. Get an insurance quote with the wind and hail deductible spelled out.
6. Get written contractor bids and add at least ten percent. First-time borrowers work within a $40,000 renovation budget.
7. For a rental, meet the habitability standards in the renovation budget, and check the rent covers a DSCR payment.
An after-repair value under $100,000. Common outside the two main metros.
A property too far from a qualifying metro area.
An ARV that ignores new-construction competition in Northwest Arkansas.
A large renovation on your first deal. The guidelines allow budgets over $40,000 only after two completed projects.
A house for a parent or grown child. The lender treats a property as owner-occupied if you or a close family member will live there, and our lending partners cannot finance it.
Yes. Yes. Arkansas rentals qualify for DSCR loans of $75,000 to $2 million, up to 80 percent of value, starting at 5.99 percent with no credit-score floor. Arkansas's 20 percent assessment ratio and capped increases keep the tax side of the calculation predictable.
Our lending partners publish a starting rate of 10.99 percent plus 1.99 points for repeat borrowers with two loans repaid in good standing. A first Arkansas deal will usually price higher. The transfer tax, appraisal, title and closing costs are separate.
Yes, including Bentonville, Rogers, Springdale, Fayetteville, Little Rock, North Little Rock and Conway. Arkansas has no restricted counties, so Bentonville and Little Rock deals get the same leverage, as long as the after-repair value clears $100,000.
In practice they are the same thing: short-term, asset-based loans from non-bank lenders, secured by investment property. Whether you searched for a private money lender or a hard money lender in Arkansas, the same program terms apply.
For a fix-and-flip loan, yes. The lender reviews credit for each guarantor, looks for a middle score of 600 or higher, and generally needs an explanation for any bankruptcy, foreclosure or short sale in the last 36 months. DSCR rental loans have no minimum score.
Yes. Business-purpose lending on investment property is common in Northwest Arkansas and around Little Rock. The lender and anyone arranging the loan still follow state and federal law, so ask for licensing details and confirm them. This page is general information, not legal advice.
Want the long version? Two free landlord books cover what a rental really costs to hold and what the new federal housing law actually changed.
Answer these and we will tell you whether it is fundable, on what terms, and how fast it could close. Investment property only — our lending partners do not finance a home you will live in.
We will run the numbers and come back to you. If it is time-sensitive, call 903-636-7511.
Dominion Hard Money does not lend its own funds; it arranges financing through third-party lending partners. All financing is arranged for business purposes only and secured by non-owner-occupied investment property. Not a commitment to lend. All loans subject to underwriting, property review, and approval by the lender. Terms vary by property, borrower experience, and exit strategy.
Texas · Oklahoma · Missouri · DSCR loans · Fix and flip loans · Loan calculator