Arizona USDA Rural Home Loans

The Arizona USDA Rural Home Loan limits have been raised for 2009.  Now, home buyers with higher incomes can qualify for a USDA Rural Home Loan in Arizona.  If you are counting on a Zero Down Payment USDA Rural Mortgage Loan with lower monthly payments than an AZ FHA Mortgage Loan, be sure and check the chart to have the confidence that your income is within the Arizona USDA Rural Mortgage Income Limits for 2009.  Take a look at the USDA Rural Home Loan qualifying section, because even if your income is higher than the stated limit, there are certain adjustments to income that may be able to help you qualify for an Arizona USDA Rural Home Loan.

Arizona USDA Rural Home Loan Income Limits for 2009:

APACHE COUNTY - St Johns AZ | Eager AZ | Springerville AZ | and all surrounding areas
1 to 4 Person Household - $73,600
5 to 8 Person Household - $97,150

COCHISE COUNTY - Benson AZ | Bisbee AZ | Douglas AZ | Sierra Vista AZ | Tombstone AZ | Willcox AZ | Huachuca City AZ | and all surrounding areas
1 to 4 Person Household - $73,600
5 to 8 Person Household - $97,150

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USDA Rural Home Loans has a MASSIVE advantage in today’s Real Estate market.  We’ve all heard these terms…

NO MONEY DOWN! ZERO DOWN! 100% Home Loan Financing!

These options for financing a home are no longer available with conventional financing NOR through FHA home loan financing.  The best option for buying a home with No Money Down is with the USDA Rural Development Home Loan, which will fund up to 102% of the appraised value.

The USDA Rural Development Home Loan allows you to finance:

• Full Purchase Price
• Closing Costs
• USDA Guaranty Fee
• Rehabilitation Costs
• Repair Costs
• Appliances

How do you find a USDA Rural Development Home Loan property that qualifies?

First, click on our USDA MAPS tab to print out the map for the area you are interested.  Then a good place to look for an eligible USDA Rural Development Home is at www.Realtor.com.  Simply look for properties within the boundaries identified on your USDA Rural Home Loan map.

You can apply for a USDA Rural Development Home Loan here.

P.S. - It’s always a good idea to get prequalifed for a USDA Rural Home Loan before you go out shopping for a new home!

USDA Rural Home Loans offer many advantages over either FHA Mortgage Loans or Conventional Home Loans.  Here is a brief summary of advantages of the USDA Rural Home Loan.

• No Down Payment - Truly a 100% home loan
• No Expensive Mortgage Insurance - Keeps your monthly payment low
• No Cash Reserve Requirement
• No Minimum Credit History Requirement
• USDA 100% Financing is a top choice among First Time Home Buyers
• No Limitation to the purchase price
• May finance up to 102% of the appraised value
• Down Payment Assistance from non profits is acceptable
• Repairs may be financed up to 100% of the “as is” value
• No limits to the concessions the seller can make - seller paid closing costs
• Rates are typically lower than FHA Home Loans or Conventional Mortgages
  

USDA Rural Home Loans provides the lowest available rates, the lowest down payment and the lowest monthly payment of any loan available.  Call us today at 520-225-0380 for a current quote.  You’ll be glad you did!

Apply online now for a USDA Rural Home Loan.

You heard it correctly.  The USDA Rural Development Home Loan Funds have been exhausted.  The demand for USDA Rural Development Home Loans is at an all time high.

The good news is that USDA Rural Home Loans will continue to be underwritten.

The even better news is that we will continue to fund USDA Rural Home Loans and it is business as usual, there will be no interruption in the fundings of USDA Rural Home Loans.

The news gets even better as the rates for USDA Rural Home Loans dipped BELOW 5% today.  Call 520-225-0380 for current USDA Rural Home Loan rates.

Apply for a USDA Rural Development Home Loan here Apply NOW!

USDA Rural Home Loan qualifying uses two different income types to determine qualification for the USDA Rural Home Loan. In the previous post we discussed Adjusted Household Income and in this post we will discuss what the USDA Rural Home Loan qualifies as Repayment Income.

The USDA considers Gross Income and Repayment Income as the same thing and is used in determining if you can afford the payment by looking at a DTI Ratio (debt to income).

USDA Rural Home Loan Repayment Income includes:

• All income that is considered stable and dependable
• The income of the person signing the promissory note
• Income anticipated to last for at least 24 more months
• At an underwriter discretion - Projected Income may be considered
• Non-Taxable income such as child support or SSI
• Vehicle allowances provided by an employer
• At an underwriter discretion - Pending pay increases if documented

Understanding income can help you qualify for the USDA Rural Development Home Loan. For more information on qualifying income, please call us at 520-225-0380.

Click here to Apply for a USDA Rural Development Home Loan.

The USDA does indeed set income limitations for qualifying for the USDA Rural Home Loan, but a little known fact is that most folks have “adjustments” to their income that will help them to qualify for the USDA Rural Development Home Loan.

The USDA will Review two types of income for qualifying for the USDA Rural Development Home Loan:

1. Adjusted Household Income
2. Repayment Income (Gross Earnings)

What do the USDA Rural Development Home Loan guidelines consider as “Adjusted Household Income”? It is basically gross income MINUS any eligible deductions.

Here is a list of 7 eligible deductions for qualifying for a USDA Rural Development Home Loan.

1. $480 deduction for each child under the age of 18
2. Verified childcare expenses
3. $480 deduction for disabled dependents 18 years old or older
4. $480 deduction for a full time student 18 years old or older
5. $400 deduction for any eligible elderly family member
6. A deduction for the care of children 12 years of age or younger, to the extent necessary to allow a member of the family to be gainfully employed
7. A deduction of the amount of which the aggregate of the following expenses of the household exceeds 3% of the gross annual income: medical expenses for elderly family, Reasonable attendant care, auxiliary apparatus expenditures for dependent family members.

These adjustments to income can help you qualify for the USDA Rural Development Home Loan if your basic income puts you over the limit. For more information on qualifying income, please call us at 520-225-0380.

We’ll talk about Repayment Income in the next post.

Click here to Apply for a USDA Rural Development Home Loan.

There is no written minimum credit score requirement to qualify for a USDA Rural Home Loan.  However, many investors who fund the USDA Rural Home Loans have a minimum requirement of 620 middle credit score.  This simply means that the USDA Rural Home Loan allows for a little variance in the credit score to qualify.

The USDA Rural Home Loan will require that any borrower with less than a 620 middle credit score undergo a stringent credit screening.  USDA Rural Home Loans will look at the most recent 12 months of rental history and with a lower credit score the USDA Rural Home Loan will definitely require you to write some detail credit letters of explanation.

The good news is that a credit score of 620 or higher may allow you to get away with some pretty significant credit dings.

Apply for a USDA Rural Home Loan in Arizona.

With the recent take over of the two largest mortgage investors in the world, what is in store for the future of Real Estate and mortgage rates.

Our USDA Rural Home Loan will save you a truck load of cash and help you keep your money in your own bank account after closing…

Here’s a quick comparison of the USDA Rural Home Loan and an FHA Mortgage Loan.

How Much Can Be Financed?

• 102% of the APPRAISED value! (finance up to $153,000 in this example)

FHA, Conventional or our USDA Rural Home Loan? Which is better for YOU?

You can apply for a USDA Guaranteed Rural Home Loan here.

I am often asked “Paul, how much can I borrow with a USDA Rural Home Loan here in Arizona?”

The answer for home buyers is “It Depends”.

For a USDA Rural Home Loan it depends on your repayment ability and the appraised value of the home you are buying.  We’ll look at the ratio of your Pre-Tax Net Income to your new monthly USDA Rural Home Loan payment.  We call that the Front End Ratio and generally like it to be around 29%.  It can go higher if there are compensating factors like a great credit score or extra savings.  There are a lot of things that can qualify as a compensating factor for the USDA Rural Home Loan.

We’ll also take a look at the ratio of your total Pre-Tax Net Income to your total monthly expenses including your new USDA Rural Home Loan payment.  The back end ratio should be around 41%, but also can go higher with compensating factors.

We’ll use these ratios to determine the maximum USDA Rural Home Loan amount that you can qualify for.

Contact me and I’ll show you not only how much you can qualify for, but also how much cheaper the USDA Rural Home Loan is than FHA or Conventional financing.

You can apply for a USDA Guaranteed Rural Home Loan here.