How To Get The Maximum Arizona USDA Loan Size is a post from: USDA Rural Home Loans for Arizona
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What’s The Maximum Loan Size For a USDA Loan in Arizona?

You’ll be happy to know that the Arizona USDA Loan does not have a maximum loan size, which may be another advantage USDA has over it’s FHA counterpart.

The maximum loan size you can get will actually be determined by your qualifying repayment income.

Here is a simple 10 step process that you can use to ESTIMATE the maximum USDA Loan size you might qualify for.  Today’s post is pretty detailed and all about math, so you may need to review it a couple times.

And we’ll use some example numbers, say an annual income of $50,000 with $575 in monthly debt payments for things like credit cards and auto loans.

Step 1 – Determine your Annual Income – in our example… $50,000

Step 2 – Verify that your annual income is within the allowable limits.  You can find the current limits on the usda rural home loans dot com website.

Step 3 – Determine your gross monthly income.  So just take the amount from Step 1 and divide it by 12. – In our example that would be $4,166 as our monthly income.

Step 4 – Determine the maximum monthly payments for ALL debt, including student loans in deferment.  Use 0.48 as the factor.  So in our example the maximum amount for all debt would be 0.48 times $4,166 which gives us $2,000.

Step 5 – Determine the maximum monthly MORTGAGE payment for your new USDA Loan.  We use 0.38 as the ratio.  So in our example 0.38 times $4,166 gives us a maximum mortgage payment of $1,583.

Step 6 – Subtract the monthly debt payments from Step 4.  In the example that gives us 2,000 minus 575 for a total of 1,425.

Step 7 – Determine the maximum allowable total monthly mortgage payment, and that is just the smaller of Step 5 or

Step 6.  In our example that would be 1,425.

Step 8 – Now you’ll need to estimate how much the monthly property taxes and hazard insurance would be.  As a general rule, 1.2 percent of the property value will give us a good amount.  In this example we’re going to look at a 150,000 house so will estimate the monthly taxes and insurance at $150.

Step 9 – Determine the principal and interest portion of the maximum monthly USDA Loan mortgage payment.  So just take the number from Step 7 and subtract the number from Step 8.  This will give you the maximum principal and interest portion of the payment that you would qualify for.  In our example we have a maximum total payment of 1,425 with taxes and insurance of 150, so the maximum principal and interest payment would be 1,275.

Apply for a USDA Loan Online Now: Loan Application

Now for the fun part, Step 10 – use a USDA mortgage calculator to estimate the maximum loan size by using the number from Step 9 as a reference for the maximum principal and interest payment.  I have a terrific mortgage calculator over at usda rural home loans dot com that you can use for this.  For our example, it looks like our guy would have no problem qualifying for his 150,000 house.

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 Arizona Home Loan Application Online here.

Arizona USDA Rural Home Loans – What’s The Maximum Loan Size? is a post from: USDA Rural Home Loans for Arizona
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Using an Arizona USDA Guaranteed Rural Home Loan allow you to buy a home in ANY County of Arizona with Zero Down payment.  That means, the money you save on your down payment by using a USDA Rural Home Loan instead of conventional or FHA Home Loan financing will stay in your bank account, for your family.

QUESTION:  What is the maximum Arizona USDA Rural Home Loan size?

ANSWER:  There is not a set maximum loan size for USDA Rural Guaranteed Home Loans.

EXPLANATION:  The USDA Rural Home Loan size you qualify for is determined by your USDA Repayment Income.  As a BASIC rule; the USDA generally likes to see that no more than 29% of your gross income goes to your new house payment and that generally no more than 41% of your gross income goes to your total outstanding credit obligations, including your new USDA Rural Home Loan.

We all know “RULES ARE MEANT TO BE BROKEN!”

Apply for a USDA Loan Online Now: Loan Application

Well qualified buyers using the Arizona USDA Rural Development Home Loan may qualify allowing up to 49.95% of gross income going toward total monthly credit obligations (including the new USDA Rural Home Loan).

In a future post, I’ll create a worksheet to help you determine the maximum loan amount you might qualify for the Arizona USDA Rural Home Loan.

To find out how much you qualify for today, click on the Get Started on USDA tab above.

Apply online for a USDA Rural Guaranteed Home Loan and get pre-qualified today.

How Much Can I Borrow WIth A USDA Rural Home 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.

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.

Apply for a USDA Loan Online Now: Loan Application

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.