USDA Rural Development Housing Program

USDA Rural housing program is administered by the USDA Rural development, which has more than 800 field offices in the USA.  Through the USDA loan program, low and moderate-income people can qualify for home loans even without a downpayment. Sometimes good credit and income are not enough to qualify for a home loan at a lending institution, such as commercial banks, saving and loan banks, credit unions or mortgage banks. With the help USDA Rural housing loans, more families and individuals may be eligible to become homeowners.

In Arizona, many areas are eligible; for example: most of Pinal county, and cities like Queen Creek, Casa Grande, Coolige,Florence & Maricopa.

In Maricopa County; for example: Cities like Anthem, Buckeye, Avondale, Tolleson and Surprise, parts of Gilbert, Chandler are eligible as well.

Highlights of the USDA Rural Housing Program

1) No downpaymentis required, making this a 100% loan to value (LTV) loan. A true zero down loan program. The loan amount can be 102% LTV when you add in the guarantee insurance fee.  This fee insures the loan for the lender who will buy and service the loan.  There is no monthly mortgage insurance payment ,which makes this an even more affordable loan.

2) There is no limitations on the sellers contribution to buyer's closing costs. Also, other closing costs can be included into the loan if the appraised value is higher than the sales price; for example: guarantee insurance premium, legal, title and escrow and pre-paid items are other closing fees allowed.

3)  Reasonable qualifying Guidelines.  No minimum FICO score or cash reserves required. Non traditional credit histories are allowed; for example:  Over 12 months history of payments for car insurance premiums, cell phones, city utility bills, Etc.  Borrowers are allowed to have assets in checking and savings accounts, IRA's, 401K's, investment accounts and stock/bond accounts. Borrowers do not need to be a first time homeowner, anyone can apply, but borrowers can not own any Real Estate at time of application.  

Buyer / Applicant Eligibility

1)  Be a U.S. citizen, qualified alien or permanent resident alien.

2)  Have a dependable income history for 2 years.  In Maricopa county, total household income for a family of four can not exceed $73,800. Family income consist of all the adults above 18 that will be residing in the home. Adjustments to the maximum income limits can be reduced by subtracting the verified annual child care expenses and $480 for each child under 18. There is a $400 deduction for any elderly family member living in the home.

Homes that Qualify

1)  Single family Homes, new or existing.  Townhomes, condos and Manufactured homes.  All properties must conform to, Federal, State and Local building codes. Manufactured home must conform to a Federal Building Code called HUD code and be Real Estate permanently affixed to the ground.

2)  FHA and USDA Rural Housing programs no longer require repairs for minor cosmetic deficiencies; for example: Missing handrails, cracks in doors and windows, minor plumbing leaks, worn flooring and kitchen counter tops and damage to walls, sheet rock and ceiling materials.

3)  Homes must be structurally and functionally adequate and in good repair.  There is no restrictions on the size and design of the home, but the land value can be only 30% of the total property value.  Properties can not be used for income-producing activities.

Call or E mail with any Questions 

 480-390-2123   

   MBongiovanni@TheLendingCo.com 
 

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