USDA Loans Arizona

When the program was first created a USDA (United States Department of Agriculture) loan was reserved for those who who purchasing land for agricultural purposes, in other words, farmers. Things have changed however and many of those buying a home that is located outside a large city are often rather surprised to learn that a USDA loan is available to them, even though the property they are intending to purchase is not at all one that would traditionally be considered rural.

USDA AZ Loan Benefits 

  • NO down payment – Finance 100% of your home
  • Affordable
  • NO PMI / monthly mortgage insurance
  • NO maximum loan amount
  • NO assets needed to qualify
  • Flexible credit guidelines
  • Competitive, fixed interest rates so payments do not increase
  • Arizona USDA Loans are for new and existing properties

An Arizona USDA loan is a true 0% down funding option, making them perfect for those homeowners whose credit is OK but who have struggled to come up with the down payment that other types of mortgage loan typically require them to. In addition, if the property is located in a qualified area, homeowners can often even refinance their existing home with an Arizona USDA loan.

What is a qualifying USDA AZ area? That literally varies by zip code, so it will not really be until a homeowner does a little research will they really be able to determine whether or not the home they are considering buying will qualify them for an Arizona USDA loan. Click the link at the top of this page to see if you are in a qualifying area.

There are two basic types of USDA loan available to homeowners who are able to determine that yes, the home they are interested in buying does indeed qualify them for a USDA loan.

1. The first, and most commonly offered type of USDA loan is the USDA Guaranteed Rural Housing Loan. Home buyers can apply to borrow up to 100% of the final purchase price, negating the need for a hefty down payment. Income limits are relatively flexible for this type of USDA home loan. Buyers can  be making up to 115% of the median area household income and still qualify for a USDA home loan.

2. USDA Direct Rural Housing Loans are less common and reserved for families with low incomes. They are though a great way for a credit worthy person to obtain ownership of a home when they may have  never thought such a thing would be possible at their current income level.

Typically, in order to qualify got a USDA Direct Rural Housing Loans the total income of the borrowers must be equal to 50 to 80% of the median area household income, although in certain circumstances a slightly higher income will not disqualify a person from obtaining a USDA Direct Rural Housing Loan.

A decision on a USDA AZ loan is not based solely on one’s credit rating but borrowers do need a credit score of at least 620 in order to have a good chance of being approved. That is however a lot lower than the credit score than most traditional mortgage loans will be looking for so if you have less than stellar credit a USDA home loan does still put home ownership within your reach. If a borrower can demonstrate that although they may have encountered financial difficulties in the past but they are now back on track their application will still usually be considered favorably.

The Mark Taylor Team can help you get an Arizona USDA Loan!

Mark Taylor’s 13 years in the Mortgage industry and his $3/4 of a billion funding give Mark the experience and YOU the confidence that every deal he does is a sound investment. Mark has earned numerous awards by helping structure the intricacies of his client’s real estate portfolios to best set up their investment and retirement needs. This has resulted in numerous awards, but more importantly, thrilled clients.

His primary role is the facilitation of clients’ needs regarding mortgages, while balancing their goals and objectives with sound financial and mortgage planning to ensure the loan they choose is the correct product for their circumstances – currently and into the future. He also trains and educated Realtors® in ethics, contract law, and short sales offering continuing education hours in those areas to ensure we raise the standard of care to our community. What more could you want from a Mortgage Planning Hero? Wings? He’s probably working on that right now.

Contact the Mark Taylor Team today to get started on your Arizona USDA Loan.

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