USDA Loans in Arizona

USDA Loans in Arizona are a Great Alternative to FHA Loans.

Why?

Because USDA loans in Arizona have no down payment requirement AND your monthly payment will probably be lower.

How is this possible?

Because USDA loans in Arizona do not require mortgage insurance.

Consider the following example comparison:

A USDA loan in Arizona would save you almost $5000.00 in required down payment money and around $30 a month in payments.

Purchase Price: $135,000.00

FHA

  • Arizona USDA LoanMinimum Down Payment Required (3.5%) = $4725
  • Estimated Monthly Payment = $941.30 **
  • Interest Rate = 5.25%
  • Annual Percentage Rate = 6.044%
  • Term = 30 years

USDA

  • Minimum Down Payment Required (0%) = $0.00
  • Estimated Monthly Payment = $910.69 **
  • Interest Rate = 5.25%
  • Annual Percentage Rate = 5.730%
  • Term = 30 years

** estimated monthly payment includes an estimated $150 for taxes and insurance

The USDA loan program in Arizona was created to help potential homeowners in rural areas; however, it can be used in the outskirts of some of Arizona’s major metropolitan areas where many of the most affordable homes are currently located.

The following are USDA Loan Program Highlights:

  • No down payment requirement.
  • No monthly mortgage insurance, 1-time guarantee fee of 2% that you finance into the loan.
  • 102% Financing based on appraised value, if appraised value exceeds sales price, borrower can finance closing costs and repairs
  • 30 Year fixed term
  • No minimum cash contribution requirement
  • No asset requirements.
  • Borrowing of unsecured funds for closing allowed (with minimum credit score requirement).
  • No First Time Homebuyer restrictions.
  • No maximum on seller concessions and 100% gifting is allowed – You can purchase a home with no money of your own into the transaction.
  • Previous housing payment is not required.
  • Declining markets do not affect LTV.

USDA Property Eligibility and Income:

If you are ready to save a lot of money, contact the AZ USDA Loan Experts with questions and for more information today.

Steve Lines, Academy Mortgage

480.580.1400

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