If you are looking to buy a property in a rural area, you may be eligible for a USDA loan.
A USDA loan is one which is backed by the US Department of Agriculture. This program also is sometimes called the “Rural Development Guaranteed Housing Loan” program.
According to the USDA, so long as the population of an area is no higher than 35,000, it can be defined as rural, and the property you wish to purchase may be eligible.
That means that there are many qualifying areas in all of the states we serve, including Arizona, California, Colorado, Oregon and Washington.
What is a USDA Loan?
A USDA loan is income-based, and as just mentioned, insured by the USDA.
Because the loan is guaranteed by the USDA, it offsets risk factors in your borrower profile.
This makes it possible to qualify more easily for a loan, and helps lenders to offer you more competitive terms.
Arizona USDA Loan Benefits
If you qualify for a USDA loan in Arizona, California, Colorado, Oregon or Washington, you can look forward to the following benefits.
- Flexible qualification requirements. Your credit score does not need to be perfect to qualify for a USDA mortgage, and neither does your DTI ratio.
- Because this is an income-based program, you do not need a high income either. In fact, too high an income can disqualify you.
- An affordable mortgage. With the USDA backing your mortgage, lenders can offer you affordable rates, low closing costs, and discounts on your PMI.
A low or zero down payment. Depending on your qualifications, you might be able to move into a rural home with no down payment.
Eligibility for USDA Loans in AZ
Are you eligible for the great benefits of a USDA loan? To obtain a USDA loan, you must meet these basic requirements:
- You must be a legal resident of the US to apply for a USDA rural housing loan.
- Your income must not exceed the income cap requirements.
- You need to be purchasing a home which is located in a rural area according to the definitions set forth by the USDA.
- You can only use a USDA mortgage to buy a property which does not exceed 2,000 ft.² There are other requirements which a property needs to meet as well in order to be eligible for USDA financing.
Apply for a USDA Mortgage Now
If you are ready to move into a beautiful rural home with zero down in Arizona, California, Colorado, Oregon or Washington, please give us a call today at
(623) 432-1309 to schedule your consultation.
