Bank Statement Loans in Arkansas

Why Bank Statement Loans Matter in Arkansas’s Market

Arkansas’s statewide average home value sits around $225,822, well below the national average of $371,774. The state ranks among the lowest in the country, making it one of the most accessible housing markets anywhere. For self-employed borrowers, though, that affordability can still feel out of reach, because conventional loans are built around W-2 employees and penalize business owners and contractors who write off expenses on their tax returns.

Here’s why bank statement loans make sense for self-employed borrowers in Arkansas:

• Arkansas has a deep self-employed and small-business base. The state is home to more than 290,000 small businesses, which represent 99.3% of all businesses in Arkansas. Independent farm operators, contractors, and owner-operators in trucking and logistics run much of that base, and the hospitals, retailers, and school systems around them lean on independent electricians, haulers, and service contractors to keep running. 
• Write-offs make qualifying harder than it should be. Deductions that keep an Arkansas small business healthy at tax time also shrink the taxable income a conventional underwriter sees. IRS data shows that, nationally, sole proprietors report net income at roughly 20-23% of business receipts on average—well below the 50% of deposits Griffin Funding counts toward qualifying income by default. A profitable contractor or shop owner can look underqualified on paper even when the deposits hitting their account each month tell a different story.
• Affordable prices keep loan amounts accessible. With the average Arkansas home value around $228,491, well below the national figure, borrowers can often stay competitive when bidding on homes without stretching into higher loan amounts. Combined with a low effective property tax rate of 0.56%, lower purchase prices can mean more manageable carrying costs.

Sources: Zillow home value data (June 2026), U.S. Small Business Administration Office of Advocacy, and IRS Statistics of Income (Nonfarm Sole Proprietorships, 2008-2015; SOI Bulletin, Spring 2025).

How Arkansas Bank Statement Loans Work

Arkansas business owners and contractors who write off expenses often show a taxable income far below what they actually earn. This tends to leave them underqualified on paper for conventional loans, even when their cash flow tells a different story.

Bank statement loans qualify you based on cash flow shown in bank statements, rather than traditional tax-return income.

Griffin Funding reviews 12 to 24 months of bank statements and calculates income from actual deposit history. The percentage of deposits that count toward your income depends on whether you use personal or business bank statements. Personal statements count 100% of deposits; business statements typically apply a 50% expense factor, which can go as low as 10% depending on your business type.

To qualify for a bank statement loan, you’ll need:

• Credit score: 620 minimum
• Self-employment history: 2 years minimum (or 1 year if you’ve stayed in the same industry)
• Down payment: 10% with a 680+ credit score; 20% minimum with a 620-679 score
• Bank statements: 12 or 24 months of personal or business statements showing consistent deposits
• Property types: Single-family homes, multi-family homes, townhomes, condos, manufactured homes, and rural properties are all eligible
• LLC ownership: Properties can be held in an LLC

Prior bankruptcy requires a two-year waiting period before applying.

View Bank Statement Loan Requirements

Today’s Bank Statement Mortgage Loan Rates in Arkansas

As a national direct-to-consumer lender, Griffin Funding cuts out the broker markup and keeps non-QM (non-qualified mortgage) rates competitive. Your specific rate depends on your credit score, down payment, loan amount, and buydown points.

Arkansas Housing Markets for Self-Employed Buyers

From the Little Rock and Northwest Arkansas metros to affordable cities with outdoor- and culture-driven communities, Arkansas has real options for self-employed buyers at every price point. Here’s where borrowers are buying across the state.

Major Metros

• Little Rock: The state capital and Arkansas’s largest city offers the deepest and most diverse local economy in the state, spanning government, healthcare, education, and finance, giving self-employed borrowers a broad, stable client base at a price point that keeps this big-city market within reach.
• Bentonville: Built around Walmart’s global headquarters and a dense network of suppliers, vendors, and agencies, Bentonville offers freelancers, consultants, and contractors a steady pipeline of corporate contract work that few mid-size cities can match. It’s among the priciest markets in Northwest Arkansas, so expect deposit requirements here to run above even the Fayetteville metro average shown in the table below.
• Fayetteville: Home to the University of Arkansas and a core part of the Northwest Arkansas metro’s sustained growth, Fayetteville pairs a university-driven economy with a lively downtown and Ozarks setting, giving self-employed borrowers a steady client base year-round, at the highest price point of any market on this page.

Affordable Markets

• Fort Smith: On the Arkansas-Oklahoma border, Fort Smith runs on manufacturing, healthcare, education, and the trades, giving contractors and service businesses a steady flow of industrial and commercial work. It is one of the more accessible price points among the state’s larger metros.
• Jonesboro: With Arkansas State University and two major hospital systems driving the local economy, Jonesboro gives service providers, contractors, and freelancers a consistent base of institutional clients in education and healthcare, at a price point on par with Fort Smith and the most affordable market on this page..
• Conway: Home to the University of Central Arkansas, Hendrix College, and Central Baptist College, Conway runs on a three-campus base of housing, facilities, and vendor work, with faculty and staff spending that holds through the summer. Sitting 40 minutes from Little Rock keeps it inside the capital’s broader economy, so buyers whose work isn’t tied to Conway itself still get the stability of a bigger metro.

Lifestyle Markets

• Hot Springs: With its lakefront setting and historic spa district, Hot Springs draws nearly 10 million visitors a year, giving remote workers and location-independent business owners a small-city pace with year-round tourism and recreation nearby.
• Eureka Springs & the Ozarks: For self-employed buyers with full location flexibility, the Ozarks offer mountain scenery, a long-running arts and tourism economy, and small-town character. Because tourism income arrives unevenly across the year, a 12-month deposit average is a better read on what a business here actually earns than a single tax return.
• Mountain Home: Set in the Ozark Mountain lakes region between Bull Shoals Lake and Norfork Lake, Mountain Home gives self-employed buyers and remote workers a slower-paced alternative to the state’s university towns, with year-round fishing, boating, and outdoor recreation in every direction. It is significantly cheaper than Fayetteville.

Free Tools for Self-Employed Borrowers in Arkansas

Run the numbers before you commit. These free tools give you an instant read on your buying power and the Arkansas market.

• Bank Statement Loan Calculator: Quickly estimate how much home you could afford with an Arkansas bank statement loan. 
• Bank Statement Loan Refinance Calculator: See how much you could potentially save using a bank statement refinance loan in Arkansas. 
• Home Affordability Calculator: Get a better idea of how much home you may be able to afford based on your financial profile and mortgage details. 
• Housing Market Insights: Explore estimated values, transaction history, and appreciation trends for properties across the state of Arkansas. 

Apply for a Bank Statement Home Loan in Arkansas

Self-employed borrowers with non-traditional income still have options to purchase property in Arkansas. With a bank statement home loan, you can qualify for up to $4.5 million in financing, no tax returns or pay stubs required. Down payments start at 10% for qualified borrowers.

Griffin Funding has helped self-employed borrowers, small business owners, freelancers, tradespeople, and independent contractors qualify for bank statement mortgage loans across Arkansas. They lend throughout the entire state, from Northwest Arkansas and Little Rock to Jonesboro, Fort Smith, Hot Springs, and the Ozarks.

Reach out today to learn more about how to qualify for a mortgage in Arkansas if you’re self-employed. If you’re ready to get pre-approved and lock in your rate, get started online.

• Joshua Miller, Griffin Funding Arkansas Loan Officer | NMLS# 1640013
• Guy Troxler, Griffin Funding Arkansas Loan Officer | NMLS# 1642169
• Ryne Sweeney, Griffin Funding Arkansas Loan Officer | NMLS# 2415016
• Valerie Zatarain, Griffin Funding Arkansas Loan Officer | NMLS# 1507400