Jun 11
6
USDA Loan: Get It While You Can
Over the last couple of years the USDA Loan has become the hottest deal in town. Why? Because it helps low to moderate income families buy a new or existing home with no money down. And in today’s current real estate market it is helping get buyers in the market who may not have been able to buy without the use of the USDA Loan; and it is helping move real estate in areas like Queen Creek, Sierra Vista, Anthem and Marana that may have sat vacant without the availability of the USDA Loan Program.
While loan programs have been changing over the last several years and tightening guidelines, the USDA Loan still remains the simplest loan to get and it’s biggest restriction has to do with the geographical areas that qualify for this loan.
Qualifying areas are based on the US Census Data by using an area’s population to determine eligibility. Currently areas in Marana and north of Tangerine Road in Tucson, are still eligible for the USDA Loan Program; however once the USDA restructures it’s eligibility maps based on the 2010 census data, those areas may no longer be eligible.
When they restructure the qualifying areas is unknown, but it does look like the population growth in those areas will make them ineligible for the USDA Loan in the future. Now when that does happen, the next low down payment would be the FHA loan which currently only requires a 3.5% down payment (and also has a monthly mortgage insurance payment).
So for anyone looking to buy a new or existing home with no down payment and in an area close to an urban area, you may want to take a look at getting pre qualified for a USDA Loan now.
Apply for a USDA Loan Online Now: Loan Application
Areas in and around Tucson most likely to be impacted:
- Marana
- Dove Mountain
- Oro Valley
- Gladden Farms
- Areas north of Tangerine Road
Areas in and around Phoenix most likely to be impacted:
- Queen Creek
- Buckeye
- Goodyear
- Anthem
Changes are also coming to:
- Prescott Valley
- Kingman
- Sierra Vista (with possible “pockets” of eligible areas)
- Casa Grande
I’ll be updating the maps as soon as we get the information verified from the local Rural Development office. Keep in mind that the changes removing current eligible areas could come at any time, or it could take months. The reason is because the changes must go through the National Rural Development office before any Arizona Rural Development office can take action.
To find out if you qualify for a USDA Loan call (520) 225-0380 or click on the Apply Now tab above and ask a question if you like. If you are ready to go ahead and get your application in, you can fill out my online Arizona USDA Loan Application here.
