When FHA made the move to outlaw seller contributed gift funds, the USDA loan program became one of the two programs of choice for buyers looking for 100% financing (VA being the other). Some of the highlights of the USDA loan program include:
- No down payment – true 100% financing
- No monthly mortgage insurance
- No cash reserves required
- No asset limits: you may keep liquid cash savings and other investments
- Not just for first time homebuyers – anyone may qualify
- Loan up to 102% of the appraised value – the 2% guaranteed fee may be added to the loan amount regardless of appraised value.
- Competitive 30 year fixed interest rates
Eligible USDA Rural Designated Areas in Arizona
In order to qualify for a USDA loan, the property that you are buying needs to be located in a designated “rural” area. To see whether or not a property is eligible for USDA financing, you can see the USDA eligibility map and search by property.
If you are considering purchasing a house in an area that is designated “rural”, the USDA loan is a tough option to beat in todays market.