At age 62, typical state borrowers receive a $122,803 initial principal limit from the reverse mortgage Arkansas homeowners use to turn home value into cash. The initial principal limit is the full amount you qualify for, and from it, loan costs and any existing mortgage are subtracted. The loan most borrowers pick is a Home Equity Conversion Mortgage, which the FHA insures as the standard reverse mortgage. From October 2025 to August 2026, the FHA insured 134 Arkansas loans, and the homes behind them had a median value of $270,500. The $1,249,125 federal lending limit was reached by 0 loans in that span.
Tax relief from Amendment 79 and the $600 homestead credit
Nationwide rules from the Consumer Financial Protection Bureau say you must maintain your home as your main residence and keep it in good shape. You also have to stay current on your property taxes and homeowners insurance. Because a reverse mortgage might default when property taxes are late, state tax discounts are important.
How to claim the homestead credit and the 5% cap
Your homestead, the home you own and live in as your primary residence, qualifies for property tax relief in Arkansas. A credit on your homestead property taxes can give you up to $500 a year. For tax bills starting in 2026, lawmakers approved raising that credit to as much as $600. You request this savings through your county assessor's office. Amendment 79 says your homestead's taxable value can go up by only 5% a year after the county reappraises, until it reaches the full assessed amount.
If I'm 65, can I freeze my property tax value?
Assessed value is the dollar amount the county assigns to your property to calculate your tax bill. If you receive the homestead credit and you're 65 or older, or have a disability, you can freeze the taxable assessed value of your homestead. The freeze takes effect on the assessment date that comes right after you turn 65 or become disabled. You won't get this freeze automatically. To start it, eligible homeowners have to apply at the county assessor's office. The freeze belongs to you and does not transfer to anyone who owns the home later.
What the Arkansas Fair Mortgage Lending Act requires for licensing
Every reverse mortgage lender in Arkansas falls under the Arkansas Fair Mortgage Lending Act. The licensing steps and standards for mortgage brokers, bankers, servicers and loan officers come from this law. This licensing is handled through NMLS by the Arkansas Securities Department. If you check a license first, you know you're dealing with a company that's allowed to lend in the state.
Use NMLS Consumer Access to check licenses for mortgage companies, branches and loan officers in the state. Anyone can search the site and see licensing records without paying. You can also call the Arkansas Securities Department at (800) 981-4429.
Can you turn to the Arkansas Attorney General when a lender dispute comes up?
Consumers can file complaints with the Office of the Arkansas Attorney General, which works alongside both consumers and businesses to settle marketplace concerns. If a dispute arises, the staff works to settle it through mediation with the company. But the office doesn't serve as your personal lawyer. If you need help with a complaint, you can call the consumer complaint line at (501) 682-2007.
