USDA Home Loans are Available for May Parts of Arizona
Arizona USDA Home Loan: What is all the hype about?
There has been a lot of talk about Arizona USDA Home Loan lately. Is this something that I should be looking into? Why would this be a good option for me?
- Arizona USDA Home Loan has some pretty great numbers that are incredibly hard to find in a loan, especially in this current climate. This loan has completely 100% financing! That means no down payment for you! If you are also looking for a loan with low interest rates, the Arizona USDA Home Loan has some of the lowest in the nation, beating other loans by almost a whole percentage point! Those interest rates are fixed, too. And if you are wondering how much you can borrow, than it will be good news to you that there is no umbrella with this loan!
- You may be wondering about those restrictions I mentioned. Well, to qualify for an Arizona USDA Home Loan, you will need to be purchasing a home in the acceptable footprint, a set of boundaries that the USDA says is considered rural. You also must make less than 115% of the county’s median income.
- And another important thing to remember is that even though you are under the required limit of 115% of the median county’s income is that the Arizona USDA Home loan is just that: a loan. They want to be quite sure you have the ability to pay it back. Most people are asked to show their finances for the last two years, show that they have a good history of paying bills on time and have a current steady income. Even if you have had to file for bankruptcy, if you can show that you have had a good credit history for the last two years you may still qualify! If you had a Chapter 7 bankruptcy then you will then need to wait at least three years before you can apply. If you filed a Chapter 13 bankruptcy and have made all the payments on time for a minimum period of at least one year, then you might be eligible to apply for a USDA loan with the court’s permission. Either bankruptcy will also require that good credit has been re-established with no late payments.
- One last requirement for the Arizona USDA Home Loan is that the home (or property) you wish to purchase must be for an actual home. You cannot get this loan for investment opportunities, such as developing properties to sell. You and your family must plan to reside in it almost immediately. The USDA wants home owners in its rural communities, not necessarily developers.
Why does the Arizona USDA home Loan exist?
The Arizona USDA Home Loan is for the improvement of rural areas. In order to qualify for this loan, the home or property that you want to buy or improve has to be in the correct area. These areas are mapped out by the United States Department of Agriculture. Be sure to look at the footprint on their website. It shows all the areas that the Arizona USDA Home Loan works in. And even if you do not want to live in a rural area, check anyway! You may be surprised what is considered to be rural. A few examples of acceptable areas in the wonderful state of Arizona include Sahurita or Green Valley, two wonderful communities just outside of Tucson.
Why is the Arizona USDA Home Loan only interested in rural areas? Why does the USDA care about home loans?
The Arizona USDA Home Loan is a government insured loan, meaning that the government will make sure the banks don’t lose money. It is referred to as the USDA Rural Development loan. The reason it exists is to provide low-cost mortgages in small town communities and rural areas. These loans are available to farmers and home buyers. The USDA just wants to bring a little more stability to rural communities by providing home owners who are more interested in building their community. This is all part of an initiative to make sure that rural counties are benefiting more from solid citizens who have the opportunity to buy instead of rent.