Shirley Mueller’s team handles VA construction loans in Arkansas. One team works with you from pre-approval through move-in.
Building a new home in Arkansas with your VA benefit
Arkansas is one of the more approachable states for a VA construction loan. Land is still reasonably priced in much of the state, rural acreage is easy to find, and there are established builders in every region, from the fast-growing northwest corner to the river towns of the Delta. A VA one-time close loan lets an eligible Veteran buy the lot (or pay off land they already own), fund the build and lock in the permanent mortgage at a single closing, with $0 down on loans up to $1 million.
For Arkansas Veterans, Shirley's team handles the loan from application to move-in. The program itself works the same way it does everywhere: one closing, a 12-month construction period, no mortgage payments while the house goes up, and a 15- or 30-year fixed rate when it converts.
Where Veterans are building in Arkansas
Most construction activity follows jobs and family. Popular cities to build in Arkansas include Little Rock, Fayetteville, Bentonville, Fort Smith and Hot Springs, and the regions differ a lot:
- Northwest Arkansas (Bentonville, Rogers, Springdale, Fayetteville): the fastest-growing part of the state. Subdivision lots go quickly, and many Veterans look a few miles out toward Pea Ridge, Gravette or Prairie Grove for more room.
- Central Arkansas (Little Rock, Conway, Cabot, Benton, Bryant): close to Little Rock Air Force Base in Jacksonville, Camp Robinson in North Little Rock and the VA medical center in Little Rock. Cabot and Austin are popular with Air Force families who want acreage within a short commute.
- The River Valley (Fort Smith, Van Buren, Alma): close to Fort Chaffee and the I-40 corridor, with a mix of town lots and rural tracts.
- Hot Springs and the Ouachitas: lake lots around Lake Hamilton and Lake Ouachita and wooded hillside parcels, where steep slopes and rock can add real cost to site work.
- Northeast Arkansas (Jonesboro, Paragould): flat, open land that is usually simpler to prepare, with the Delta's soil and drainage questions to plan around.
Land and site considerations in the Natural State
Arkansas terrain changes a lot from one region to the next, and the lot drives a big share of the budget. A few things my team asks about early:
- Rock and slope in the Ozarks and Ouachitas. Shallow limestone, sandstone or shale can mean blasting or extra excavation, and a sloped lot may need a taller foundation wall or retaining walls. Your builder should price this into the fixed-price contract before closing, not discover it after.
- Wells and septic on rural land. Outside city limits you will often need a private well and an on-site septic system. Soil testing for septic is done before design, because the results can decide where the house sits and which system you need. The VA appraisal will also look at water quality and system approval.
- Flood zones in the Delta and along the rivers. Land near the Arkansas, White and Mississippi rivers can sit in a mapped flood zone. If any part of the home is in a special flood hazard area, flood insurance is required, and elevation affects both cost and the appraisal.
- Severe weather. Arkansas sees tornadoes and strong spring storms. Many Veterans add a storm shelter or safe room, which can usually be included in the construction budget when it is part of the plans and contract.
- Access and utilities. Rural parcels sometimes lack a recorded access easement or a nearby power line. Both need to be solved before the loan can close.
If you already own your land, the equity can count toward the deal, and the loan can pay off any remaining lot balance at closing. Read more about building on land you already own.
Choosing a builder in Arkansas
Arkansas requires a residential building contractor license from the Arkansas Contractors Licensing Board for residential work of $2,000 or more, including labor and materials. For a VA construction loan, the builder must also be approved by the lender before closing and must work under a fixed-price contract. VA no longer issues builder ID numbers, so lender approval is the step that matters.
Good questions to ask any Arkansas builder you are considering:
- Can you show a current Arkansas residential builder license and proof of insurance?
- Have you built homes financed with VA, FHA or other construction-to-permanent loans before?
- Will you sign a fixed-price contract that includes site work, well and septic if they are needed?
- Can you realistically finish within a 12-month construction period?
My team's VA construction loans don't allow owner-builders or DIY work, even if you have construction experience. See our builder information page for what a builder submits for approval.
What you can build
A VA one-time close loan can finance a new site-built home, a barndominium, a modular home or a new manufactured home (multi-width, or single-width only from select manufacturers), as long as it will be your primary residence. Barndominiums are a natural fit for Arkansas acreage. A 2–4 unit home works too if you live in one of the units. Attached homes, co-ops, container homes, working farms or ranches, and lots where construction has already started are not eligible. The minimum property requirements checklist covers the details.
Arkansas property tax relief for disabled Veterans
Arkansas exempts the homestead of certain disabled Veterans from state property taxes. A Veteran qualifies if the VA has awarded special monthly compensation for the loss of a limb or the use of one, total blindness in one or both eyes, or a service-connected 100% total and permanent disability. The exemption continues for an unremarried surviving spouse and minor dependent children. You apply through your county collector's office once the home is your homestead. Our property tax exemption by state page has more context, and the Arkansas Department of Veterans Affairs property tax guide has the official details.
A Veteran receiving VA disability compensation is also exempt from the VA funding fee, which lowers the total loan amount.
How the numbers come together
Your loan amount is built from the lot price (or payoff), the builder's contract, and costs like the interest reserve and construction management fee, which are built into the loan and paid by the builder, so you make no payments during construction. Qualifying looks at residual income first. VA construction loans start at a 620 minimum credit score, and larger loan amounts may need a higher score. Plan on about 2–3 months to close, then a 12-month construction period. You can see the full picture on our VA one-time close construction loan page and the closing costs guide.
Arkansas VA construction loan FAQs
Can I use a VA construction loan to build on acreage in rural Arkansas?
Yes, as long as the home is your primary residence and the property isn't a working farm or ranch. Rural lots often need a well, septic system and legal road access, and those costs should be in the builder's fixed-price contract.
Does my Arkansas builder need a state license?
Yes. Arkansas requires a residential building contractor license from the Arkansas Contractors Licensing Board for residential projects of $2,000 or more. The builder also has to be approved by the lender before closing.
Can I build a barndominium in Arkansas with a VA loan?
Yes. Barndominiums are eligible when they are built as a primary residence by an approved builder under a fixed-price contract, and the appraisal supports the value.
Do I have to make payments while my Arkansas home is being built?
No. The interest reserve and construction management fee are built into the loan amount and paid by the builder, so your first mortgage payment comes after the home is finished and the loan converts.
Do disabled Veterans pay property tax on a new home in Arkansas?
Veterans who qualify for Arkansas's disabled Veteran exemption, such as those with a 100% total and permanent service-connected rating, can have their homestead exempted from state property taxes. Apply with your county collector once you move in.
Can I add a storm shelter to my new Arkansas home?
Usually, yes. If the shelter or safe room is part of the approved plans and the builder's fixed-price contract, it can be financed with the rest of the construction.