USDA Loans for Tucson Homebuyers
By Michael Balicki
The USDA Rural Development Home Loan is a mortgage loan that is insured by the USDA. Backed by the US Department of Agriculture, these no money down, fixed interest rate loans are helping many home buyers in Tucson accomplish their dreams of homeownership. Although there are some restrictions, USDA loans are available to qualified individuals that meet the income eligibility and who are purchasing their home in an area that is not considered a major metropolitan area by the USDA.
Read below for more detailed information for USDA loans in Tucson, Arizona.
Benefits of a USDA Loan in Tucson
100% Financing – you can purchase a home in Tucson with no money down, which is unheard of these days other than VA loans.
USDA loans are usually easier to get because the Government insures the loan so that there is much less risk to the lender then other types of mortgages.
They can be used for Existing Homes, Foreclosures, New Construction, and New (12 months or prior) Manufactured homes.
Simple Loan Process.
No Loan Limit. No Acreage Limit.
There is No Prepayment Penalty meaning you can pay off your loan early without worry of paying a penalty fee.
Flexible Credit Requirements.
This is a fantastic loan that isn’t known by many.
Here are 7 frequently asked questions:
What is a USDA Mortgage?
A USDA Mortgage is a residential home loan available to those borrowers buying homes in rural areas. The USDA guarantee mortgage is also known as The Rural Development Guaranteed Housing loan.
How can I find out if a property is USDA eligible?
This is a map of the USDA boundaries, everything outside of the red line is qualified for USDA loans. But this map is always changing. The best course of action is to contact a loan officer to get prequalified, then review if the specific property is eligible by contacting me.
What are the disadvantages of a USDA Loan?
Not all homes for sale are eligible for USDA guaranteed financing, either the property location or the property condition can eliminate it from eligibility.
There is a maximum income eligibility for borrowers. This income restriction is $78,200 for a family of 1-4, 5+ is $103,200 in Pima County
The mortgage insurance, although affordable, is attached to the mortgage and required for the life of the loan. It is not able to be removed from the loan as long as the loan is USDA.
USDA has a conservative debt to income requirement and requires lenders to adhere to a strict guideline when calculating borrower’s monthly liabilities.
Is a USDA loan possible after bankruptcy?
Yes, you can buy after a bankruptcy. If you had a Chapter 7 bankruptcy, then the wait period is a minimum of 3 years from the discharged date before you can apply for a USDA loan. If you filed a Chapter 13 bankruptcy and have made all the payments on time for a minimum period of at least one year, then you might be eligible to apply for a USDA loan with the court’s permission.
Aren't USDA loans just for farmers?
USDA Loans are not “just for farmers”. Over the years, millions of people from all over the United States have purchased their home through this government loan program.
Who governs this program?
HB-1-3555 – SFH Guaranteed Loan Program Technical Handbook
I'm interested! Where do I get started?
If you’re buying or selling soon, contact me today to get started on this program or review the guide to purchase a home.