USDA Loans: Highlights of the USDA Loan Program in Arizona

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.