Private Money Lending in Arkansas
Arkansas has an active private lending market, particularly in Little Rock and Northwest Arkansas, with relatively affordable property values.
This guide covers the essential legal and compliance considerations for private money lenders originating loans secured by real property in Arkansas. Whether you are a local private money lender or expanding into Arkansas from another state, understanding these requirements is critical to protecting your investments and ensuring enforceability of your loan documents.
Key Compliance Considerations for Arkansas
• Arkansas has a constitutional usury limit of 17% that applies to ALL loans including commercial — one of the few states with no business-purpose exemption
• Both mortgages and deeds of trust are used; deeds of trust allow faster non-judicial foreclosure
• The state allows deficiency judgments after foreclosure, providing lenders an additional recovery mechanism
• Arkansas requires specific notice provisions and waiting periods before initiating foreclosure proceedings
Generate Arkansas-Compliant Loan Documents
Automate Loan Docs generates complete, Arkansas-specific document packages that comply with all applicable state requirements. Every template is drafted by the attorneys at Geraci LLP, whose team has over 30 years of combined experience advising private money lenders across all 50 states — including extensive experience with Arkansas lending transactions.
This guide is for informational purposes only and does not constitute legal advice. Private lending laws are complex and change frequently. Consult with a qualified attorney before originating loans in Arkansas. The attorneys at Geraci LLP are available for state-specific legal consultation.
Related: Usury Laws by State | Deed of Trust vs Mortgage | Multi-State Lending Guide | Glossary