Home Loans California & Arizona

Kingman, AZ, Buy a house on the USDA Home loan with no money down

August 7th, 2019 12:50 PM by Nathan Rufty

Kingman, AZ USDA loans come with some big-time benefits, including no down payment and more flexible credit guidelines than other loan types. But not all homes are eligible for USDA financing.

USDA loans in Kingman, AZ have property eligibility requirements rooted in the program's mission to boost rural communities nationwide. For a property to be eligible for a USDA loan, it must meet the basic eligibility requirements set forth by the USDA, which cover rural area designation, occupancy, and the physical condition of the home.

The good news is that most of the country is in what the USDA considers a qualified rural area. But it's important for prospective buyers to check a home's eligibility status before getting too far into the process.

What is a "Rural" Area?

For a home to meet the USDA's rural definition, it must be in an area that's located outside of a town or city and not associated with an urban area

The USDA's guidelines on the definition of a qualified "rural area" includes:

  • A population that doesn't exceed 10,000, or
  • A population that doesn't exceed 20,000; is not located in a metropolitan statistical area (MSA); and has a serious lack of mortgage credit for low- to moderate-income families, or
  • Any area that was once classified as "rural" or a "rural area" and lost its designation due to the 1990, 2000 or 2010 Census may still be eligible if the area's population does not exceed 35,000; the area is rural in character; and the area has a serious lack of mortgage credit for low- and moderate-income families.

These guidelines are generous in the sense that many small towns and suburbs of metropolitan areas fall within the requirements.

USDA Home Loans Benefits in Kingman, AZ

  • No Down Payment
  • Competitive Interest Rates
  • Low Monthly Mortgage Insurance
  • Flexible Credit Guidelines
  • Millions are Eligible
  • Ability to Use if You Already Own a Home
  • Favorable Loan Terms

Specific USDA Home Requirements


The USDA requires the home to be structurally sound, functionally adequate and in good repair. To verify the home is in good repair, a qualified appraiser will inspect and certify that the home meets current minimum property requirements set forth in HUD's Single Family Housing Policy Handbook.

A few of these standards include:

  • Access to the property: The property should be easily accessible from a paved or all-weather road surface.
  • Structurally sound: The foundation and home must be structurally sound for the life of the mortgage.
  • Adequate roof: The roof must prevent the entrance of moisture and provide sufficient minimum economic life.
  • Functional heating and cooling: Heating and cooling systems will be assessed, regardless of design, fuel or heat source. Central air is not required, but if installed, it must be operational.
  • Operational electric system: The electrical system of the home must be adequate and up to date, with no frayed or exposed wiring. The electrical system must also be able to support typical functions and appliances for the size of the home.
  • Suitable plumbing and water flow: The home must have working plumbing and enough water pressure for waste removal.
  • USDA loans have a different appraisal process than other loan types in the sense that the appraiser is ensuring the property meets all standards set by the USDA in addition to determining the fair market value of the property. Keep in mind that appraisals are not as in-depth as a home inspection.
Usda home loans Kingman, az

To apply for a USDA-backed loan in Kingman, AZ, talk to a participating lender. If you’re interested in a USDA direct mortgage or home improvement loan or grant, contact Nathan Rufty at (623) 850-1210.

A program sponsored by the USDA might seem to be targeted to farmers and ranchers, but your occupation has nothing to do with the qualification process. Eligibility is simply a matter of income and location. 


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