In Arizona, when you a buy a house with The United States Department of Agriculture (USDA) loan program, NO down payment is required and you are able to finance up to the property’s appraised value.
The two current USDA loans available to Arizona residents are the, “USDA Guaranteed Rural Housing Loan” and, “USDA Direct Rural Housing Loan”. Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Rural does NOT mean it has to be a farm. The property simply needs to be outside the limits of a major city and in an area where the population is 20,000 or less. For example – Sections of The Town of Queen Creek are still eligible.
The USDA Loan is a great alternative if you do not qualify for traditional financing.
- No down payment is required – 100% Financing up to the appraised value.
- New & Existing Homes are Eligible
- Low Fixed Interest Rates.
- No Maximum Loan Amount
This link will direct you to a .gov site that can be used to determine if your property or the property you are hoping to purchase is eligible for a USDA loan. You can even purchase a NEW home using a USDA loan as long as it is located in a USDA-eligible area!
- Applicants for loan must meet income-eligibility
- Agree to personally occupy the home as their primary residence
- Minimum credit score of at least a 640
- Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
USDA Loans require ZERO money down and they allow for the closing costs to be included in the loan amount (appraisal permitting). USDA loans allow the Seller to pay up to 3% of the sales price towards the buyer’s closing costs. Buyers also have the option to offset closing costs by using gift funds from family members or qualifying non-profit agencies.
If you would like to inquire about further information or find out if you are eligible, contact us here OR call us at 480.447.2199 and we will put you in touch with one of our preferred lenders!
USDA Arizona Home Loan Calculator
USDA Loans 101
HUD U.S. Fair Housing Act (Know your rights)