The USDA Rural Home Loan Program
The Arizona USDA loan program offers advantages over other loan programs – if the house that you are considering buying meets the location requirements for the USDA program. You can see if the property that you are considering meets the Arizona USDA loan requirements by checking the USDA loan eligibility database.
Arizona USDA Loan Program Highlights:
- Truly a 100% home loan
- No down payment required
- No up front or monthly mortgage insurance
- No cash reserve requirements
- Officially – no minimum credit score – unofficially – need at least a 620 credit score
- No loan limits
- Down payment assistance (if it ever comes back) is okay
- Can finance up to 102% of the appraised value of the home
- Seller concessions are allowed (seller can pay the closing costs)
- Rates are usually about the same as FHA loans
Arizona USDA Loans: A True 100% Home Loan
In Arizona, when you buy a house with the USDA loan program, no down payment is required and you are able to finance up to 102% of the property’s appraised value. This makes the USDA loan program very popular with many first time home buyers who want to stretch to get into that first house and don’t want to spend all of their reserves on their down payment.
Arizona USDA Loans: No Up Front or Monthly Mortgage Insurance
With the Arizona USDA loan program, another advantage is that there is no up front mortgage insurance (UFMIP for FHA Loans) and no monthly mortgage insurance (both FHA and Conventional loans). Because there is no up front and no monthly mortgage insurance, you can expect to save up to thousands of dollars each year on your monthly mortgage payments with the USDA loan program.
Arizona USDA Loans: No Loan Limit
The USDA loan program will allow you to finance “as much as you can afford”. There is no official loan limit with the USDA loan program, but the amount of money that you can borrow depends on your ability to repay the loan.
USDA Loans: Seller Concessions Are Allowed
With the USDA loan program, you can get the seller to pay as many of your closing costs as you can. There are no limits on “seller concessions” so negotiate the best deal that you can! Many loan programs limit the amount of seller concessions that you can have, but the USDA loan program doesn’t put a limit on them.
Certainly the USDA loan program is one of the best options for many people to buy a house here in Arizona. Is it the only option? Certainly not. This is why it makes the most sense to speak with one of our mortgage experts who can help you find the best possible home financing options for your individual situation.
Get The Best Deal on a USDA Mortgage
What is the best way to get a deal on a USDA loan? Well, most lenders will not tell you this, but the best way to get a great deal on a USDA loan is to shop multiple lenders. Shopping lenders makes them compete – and when they have to compete, then you get the best deal. Getting a USDA mortgage quote is easy, takes only a few minutes and can save you thousands on your mortgage. Get started getting multiple quotes right here!