USDA Loans Arizona

Did you know that home buyers can buy a home with no money down with a USDA Loan in Arizona? Many people have heard of the FHA and VA loan programs but are not aware of a third “government loan program” available to Arizona home buyers.

The USDA home loan program is a great program for people looking to buy a home in Arizona with little to no money down.

True to their name, USDA loans were created to help potential low- to moderate-income homeowners in rural areas. This includes many areas on the outskirts of some of Arizona’s larger cities, where many affordable homes are located.

Arizona USDA loans are intended for people living in Arizona’s rural communities to achieve homeownership. They are a popular loan with recent college graduates, newly formed households, low-to-moderate income earners, first-time home buyers, and those who have had past credit challenges.

USDA Loans Arizona Closing Cost Assistance

An Arizona USDA Loan is almost always offered with 100% financing. However, this does not necessarily mean that home buyers shouldn’t bring cash to close. There are closing costs associated with the loan as well as prepaid items such as interest, taxes, and insurance. The good news is that Arizona USDA down payment assistance programs offer sufficient grant money to cover the majority of these costs, so you can buy your home with as little out of pocket as possible.

The following are Arizona USDA Loan Highlights:

• No down payment requirement
• Competitive interest rates
• Can be combined with Arizona down payment grants to cover closing costs
• No first-time homebuyer restrictions
• Flexible underwriting guidelines make it easier to qualify than other Arizona loan programs
• No minimum cash contribution requirement
• Seller concessions and 100% gifting is allowed

With a USDA home loan, you can purchase a home without putting any of your money into the transaction.

USDA Home Plus Loan Program

As mentioned, Arizona USDA loans are a government loan program that offers 100% financing. The grant money from the Home Plus program is instead used to cover closing costs. As such, there is no down payment requirement. They are a great way to buy a home in Arizona with no money out of pocket. Home Plus USDA Loan Programs are offered anywhere in Arizona, other than Maricopa and Pima Counties.

Program Highlights:

• Down payment assistance offered 2% and 5%
• Minimum FICO score is 640
• Maximum debt-to-income of 45% if your credit score is 640 and 50% if your credit score is 680.
• Maximum income of $136,609

Who Can Buy a Home in Arizona with a USDA Loan?

Anybody who plans to occupy a home located in an eligible rural area in Arizona as their primary residence may qualify for a USDA loan. Eligibility is based on the home’s location. USDA offers the ability to see if a property is eligible for USDA financing here.

FHA | VA | CONVENTIONAL