Arizona USDA Loans: Becoming More Popular

Something strange is happening that is not really being reported on the news — there are bidding wars going on for homes currently in Arizona. I know this because of the network of Realtors that I work with and they are often submitting an offer on a property that “gets beat” by a competing offer.

Many of the homes that are receiving multiple offers are homes that first time home buyers would be interested in — what I consider to be the $250,000 and below price range.

One of the popular loan programs in this price range for properties that fit the “rural” designation is the Arizona USDA loan. There is an easy way to tell if the property that you are considering is eligible for the USDA loan program: you can check it by using the USDA loan eligibility database.

Most commonly, people ask me “what is the benefit of the USDA loan program vs. an FHA loan?” The USDA loan program offers several advantages over other loan programs – including the FHA loan program:

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

Is the USDA loan program right for you? It might be. Be sure to speak with someone who is an expert in USDA loans to learn more about the program and if it is the right loan program for you.

Arizona USDA Loan Rates For March 30 2009

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