A Startling Fact About The USDA Loan And The 2010 Census is a post from: USDA Rural Home Loans for Arizona
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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.

How To Find USDA Loan Program Qualifying Areas In Arizona 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.

Here Is How You Find Qualifying Areas For The USDA Loan Program

The USDA Loan Program is restricted to certain geographic areas, and one of the questions I hear a lot is how can I tell what areas are eligible for the USDA Loan, where should I be looking to buy a home?

Let’s take a quick look at what the USDA defines as an eligible area.

The USDA says that to be eligible a property must be in a rural community.  Generally, these are communities of less than 10,000 people, but the USDA does make exceptions.  Certain areas between 10,000 and 25,000 in population are considered rural based on their distance from urban areas.

So it comes down to population and how far away from an urban area you are.

So here is a list of Urban areas that are NOT eligible; Flagstaff, Bullhead City, Lake Havasu City, Prescott, Phoenix, Tucson, Yuma and Sierra Vista.  Now be sure to keep in mind that their suburbs may be A-Okay.

Did you know that Arizona has 15 counties?  And right now 7 of those counties don’t have any eligibility restrictions.  That means that every single geographic part of that county qualifies for the USDA Loan.

Apply for a USDA Loan Online Now: Loan Application

On the USDA Rural Maps tab you can find a constantly updated list of USDA qualifying areas.  Once there you will see specific areas that you can quickly look at and see the eligible areas.

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 a question if you like.  If you want to go ahead and get your application in, you can fill out my Arizona Home Loan Application Online here.

How To Get A USDA Loan For A Home With A Swimming Pool 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.

Even When They ALL Say You Can’t..Yes You Can!

I get this question quite a bit, probably because I’m in Arizona right?  And a pool is a great way to keep cool in our fairly hot summers.

But a lot of lenders will just say NO when it comes to using a USDA loan to buy a home with a swimming pool.  They probably shy away because a property with an in ground swimming pool not only has to get the local Rural Development office to approve the Guarantee in order to get a USDA Loan, but they also have to get what’s known as a POOL WAIVER from the NATIONAL Rural Development office.

Sounds like a lot of extra work, doesn’t it?

The reality is that it isn’t that bad.

Here’s how to get a USDA Loan on a home that has an in ground swimming pool.

The USDA Loan has some additional calculations that help determine the value of a home with a swimming pool.  They do this because the USDA is not in the business of financing luxury items, and an in ground pool could be considered just that.

Apply for a USDA Loan Online Now: Loan Application

So we need to have the appraiser provide a value for the home AS-IS, with the pool.  And we also will need the appraiser to provide a value for the home as if it did NOT have a swimming pool.

The appraiser will basically create a duplicate appraisal.  One shows comparable properties WITH swimming pools, and the other will show comparable properties without swimming pools.

And no, they don’t charge you for two appraisals.

So as long as the value without the pool supports the sales price, and it usually does, then you should qualify for the Pool Waiver.

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.

USDA Rural Development Bank Owned Homes For Sale 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.

How To Find USDA Bank Owned Homes For Sale

Did you know that there is an inventory of USDA foreclosure properties for sale?  There are some amazing deals to be picked up on properties that have gone through foreclosure.  In some parts of the country you can get a foreclosure property at around a 40% discount off of what would normally be considered a fair market price.

In Arizona the discount you can pick up on a Bank Owned Property seems to be about 20-25% on average as reported by Realtytrac.com today.

If we are thinking about getting a USDA Home Loan to finance a bank owned property, then there are really two different types of property to look at.

First a foreclosure property that is in a USDA Eligible area but not originally financed by a USDA Loan.  Your best bet to find this type of property is to use the USDA Maps tab above and narrow down by geographic region with your real estate agent.

The other batch of homes are actually USDA Foreclosures, so they are bank owned inventory that were originally financed with a Rural Development Loan.

You can search for USDA Rural Development Bank Owned Properties on the www.USDA.resales.gov website.

Apply for a USDA Loan Online Now: Loan Application

Each property on that site is eligible for a new USDA Loan.  They are grandfathered in even if the boundaries have changed since the original financing was put in place.

To search for USDA Homes follow these steps:

1. Go to the website above
2. Select the County you are interested in

Next you’ll see a complete list of homes that are currently USDA Bank Owned.  While it sounds like you will find a screaming deal looking for an existing USDA home, keep in mind that the USDA has the lowest defaults of any loan type around.  At the time of this writing Pima County only showed four USDA foreclosures and Maricopa only shows 3.

It’s worth a look, but in my opinion your best bet is to find an eligible area and narrow it down geographically.

To find out if you qualify for a USDA Loan, 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.

Try This New AZ Home Search Before You Get Your USDA 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.

New Arizona Home Search Tool

We’ve just added this super cool Arizona Home Search tool that you can use to find homes anywhere in Arizona.  So while you are perusing our site and gathering a ton of useful information about the USDA Loan, be sure and try out the Arizona Home Search.

Here is how I would suggest using our USDA Loan Arizona Home Search tool..

We’ve eliminated this search tool as it slowed down the site and created an enormous amount of broken links, which nobody likes.  I’ll be looking for a new search solution, any suggestions would be appreciated. 

Step 1 – Determine the USDA Loan amount you can afford.

I have several articles written on USDA Income Qualifying that you can read.  You can also review the USDA Underwriting Guidelines posted on this site.

For the most accurate determination, over on the right hand side of this page you will see a form called “Get Started on USDA Today!”.  Just fill that form out and in the comments section let us know you would like to determine how much of a USDA Loan you can qualify for.  We’ll get that number to you right away.

Apply for a USDA Loan Online Now: Loan Application

Step 2 – Do a Home Search

Now the fun part, click the “Search AZ Homes By City” tab above and pick your city.  There are more than 90 cities listed for the Arizona Home Search.

The AZ Home Search will show you the following types of homes:

• Foreclosures
• Short Sales
• Condos
• Town Homes
• Regular For Sale homes
• New Homes

It uses Google Base to find these homes and has a set of default criteria for each search.  You can change the search criteria by clicking the text above the listings that reads “Narrow Down Your Search” and then look for the REAL ESTATE SEARCH box on the right hand side of the page.

You can customize the search by:

• City
• Distance from a city
• Type of sale
• Property Type
• Minimum Price
• Maximum Price
• Minimum Bedrooms
• Minimum Bathrooms

While you are using the Arizona Home Search tool, you can create an account which can do the following for you:

• Save Listing to review later or print out and save in a binder
• See a detailed description of the property
• Locate the property on a Google Map
• See a list of Schools in the area
• See a list of convenient Neighborhood Places such as:
  • Churches
  • Theaters and Entertainment
  • Restaurants
  • Parks, Recreation & Golf Courses
  • Shopping
  • Motels
• Contact the Listing Agent for more information

I’m really excited about the Arizona Home Search tool and would love to get your feedback.

To find out if you qualify or how much you can save each month with a new USDA Loan, 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.

The 2nd Factor the Lender Looks For When You Apply For A USDA Rural Development 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.

What The USDA Rural Development Underwriter Looks For When You Apply… Part 2

This is part 2 of a 3 part series where we will look at the 3 most important factors that a USDA Rural Development underwriter will look at when reviewing your file for loan approval. If you have questions that are not addressed here specific to USDA Rural Development Property Qualifying, please ask them in the comment box below.  Also be sure to spread the word about USDA Loans by hitting the “RETWEET” button on the right.  Most people don’t know about the USDA Rural Development option and what benefits it can provide for a qualifying home buyer.

In the last post we looked at the first thing that a USDA Rural Development underwriter will look at when reviewing your loan application for loan approval, your credit.

Today we’ll look at the 2nd most important factor;

2.  The Collateral

While it may seem as simple as finding a house and buying a house, it isn’t.  The USDA Rural Development home loan has some specific collateral requirements that are unique when compared to FHA or Conventional loan financing.

Most importantly, the property must be located within a USDA eligible community.  The USDA relies on a combination of census data and/or the distance from urban areas when they determine if a community is eligible or not.  Under the USDA Rural Maps tab above, you can find a list of USDA Rural Development qualifying property maps for Arizona as well as a resource where you can check a specific property address (in any state, not just Arizona).

First let’s look at what collateral is generally acceptable for the USDA Rural Development home loan.

Eligible USDA properties include:

• Existing or New Construction homes
• Townhouses and Condominiums
• Existing or New Modular Homes
• Existing property in need of minor repairs (see notes below)
• Properties with swimming pools (see notes below)
• Properties with a shared well (An acceptable recorded HUD shared well water agreement will be required if the well is not on the subject property)

I know what you are thinking and I hear this question quite a bit;  “What about Manufactured Homes?”

While the USDA will issue a USDA Loan guarantee for a brand new manufactured home, there are very few lenders who will actually underwrite and fund a manufactured USDA Loan.  So if you have a manufactured home on your mind, check with your lender first to avoid a last minute disappointment.  Currently, we do NOT finance manufactured USDA Rural Development Loans.

Apply for a USDA Loan Online Now: Loan Application

An existing property that is in need of some minor repairs may still qualify for a USDA Rural Development home loan but there are some things you need to know, just in case you rush out and find a bank owned property in need of some fixing up.  They can be financed up to the “AS-IMPROVED” value of the home (as determined by a real estate appraisal) but the important factor is that the repairs and improvements must be completed before the final USDA Rural Development Guarantee can be issued.  This means that you would have to work with the seller to complete the repairs before funding.

Properties with swimming pools are allowed however the USDA Rural Development Loan amount will be based on the property value minus the value of the swimming pool.

Ineligible USDA Rural Development properties include:

• Farms and hobby farms
• Existing manufactured homes
• Income property such as a duplex (no 2-4 unit properties)
• Property located on a dirt road (all weather surface for the road is required)
• Property with Hauled Water (allowed on Indian Reservations)
• Property where the site value is more than 30% of the total appraised value

In summary, when considering a USDA Rural Development loan to finance your home purchase the first thing to do is to verify that the property is in a qualifying area (use the tab above).  The second thing to do is review the eligible property types and confirm it qualifies.

In the next post we will discuss the 3rd most important factor that the USDA Rural Development Underwriter will be looking at in your loan application file.

Please be sure to help get the word out about USDA Rural Development home loan financing options by hitting the “RETWEET” button above.  Thanks for reading and if you have any questions, please ask them in the comment box below.

To apply for a USDA Rural Development Loan click on the Get Started on USDA tab above.