How Much Cash Do I Need To Close A USDA Loan? is a post from: USDA Rural Home Loans for Arizona
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So how much will you need for closing a USDA Loan?

With most loans you would need to bring in some cash to closing in order to cover the closing costs and the down payment.  The USDA loan works a little differently and in MOST cases you can get a portion or even most of your earnest money deposit refunded back to you at closing.

Here’s why..

You see the USDA Loan bases its loan amount on 103.5% of the appraised value.  And typically the appraised value is slightly higher than the purchase price.  This allows us to roll the closing costs into the loan and sometimes increase the loan amount just enough so that you can get your earnest money deposit back at closing.

Let’s do some math and take a look at an example.  Let’s say you put $1,000 earnest money down on a property that is for sale for $175,000.  When the appraisal comes back, it comes in at $180,000.  So we know the loan amount can be up to $186,300.

Apply for a USDA Loan Online Now: Loan Application

So for this example, let’s add together the sales price of 175,000; the amount of the USDA Guarantee fee which is 3.5% or roughly 6,125 plus any closing costs and impounds, which we’ll say are 4,500 for this example.

This would give us a final loan amount of 185,625 which is less than the maximum allowable loan amount, so you would be able to get your full earnest money deposit of $1,000 back at closing.

I hope you found this Arizona Home Loan tip useful and would love to hear your comments.

To find out if you qualify for a USDA Loan call (520) 225-0380 or click on the Get Started on USDA tab above and ask for a quote.  If you want to go ahead and get your application in, you can fill out my Home Loan Application Online here.

How Much Will I Need Down For A Rural Real Estate Loan? is a post from: USDA Rural Home Loans for Arizona
If you are not reading this post on USDARuralHomeLoans.com, within your feed reader or in our newsletter, then the content has been stolen and the site you are reading it on is not reputable and is plagiarizing our content. Quite frankly, I would suggest not doing business with them and if they have google ads, I would suggest reporting them to google. Please return to USDARuralHomeLoans.com to read our original articles.

One of the best things about the UDSA Rural Real Estate Loan is that it allows people with low to moderate income to qualify to buy real estate in a rural designated area for zero down payment.

Nothing Down…

Apply for a USDA Loan Online Now: Loan Application

No money out of pocket at all to get a USDA Rural Real Estate Loan… well, almost no money out of pocket!

You see, the average out of pocket to buy rural real estate in Arizona with the USDA Loan program is $158.70.

You really can buy Real Estate in Arizona with No Money Down, you just have to find the right property!

So if you are thinking of buying a home in Arizona and have $160 laying around, the USDA Rural Home Loan may be just what you are looking for.  Take a look at the Maps in this site to see if the property you are looking at qualifies.  If you can’t tell, just contact me and I’ll check it out for you or you can look into the USDA Eligible Properties database.

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