Home Loans California & Arizona

Payson AZ USDA purchase home loan program, who does them

July 25th, 2019 10:19 AM by Nathan Rufty

USDA Rural Development in Payson AZ provides loans in rural areas to eligible low- and very low-income applicants. The loan may be to purchase existing housing, purchase and repair existing housing, purchase a building site and construct a dwelling, or purchase new housing. The property must be in good repair or placed in good repair with loan funds and must be energy efficient. A third-party home inspection is required for electrical, heating, plumbing, water and wastewater disposal systems, if applicable, and termite inspections. This third-party inspection must be performed by a qualified home inspector. The payments for costs associated with the inspections will be agreed upon between the buyer and the seller and should be discussed prior to signing a purchase agreement. Rural Development can provide additional guidance for these items as you proceed through the loan process. All who apply get equal consideration without regard to race, color, religion, sex, marital status, age, disability, or national origin. 


When it comes to exploring the affordable home loan options in Payson AZ the USDA Loan Program is a great option. Designed to make the dream of home ownership a reality for the residents of Payson AZ, these no money down home loans were designed to help strengthen many of this great state’s already strong rural communities.

Benefits of the Payson AZ USDA Home Loan program include:

  • No Payson AZ loan amount limitations
  • $0 down, 100% financing is available
  • No Payson AZ monthly mortgage insurance
  • Lower income families and those with blemished credit may qualify

Payson AZ USDA Home Loans General Guidelines:

Loans for new construction, purchase of new or existing dwellings, necessary repairs.
Homes must be located in rural communities. 

Clients may begin the application process with a Packaging Agency in partnership with Rural Development Staff, under a centralized process, allowing for faster processing timeframes, or by applying directly with Rural Development.

Must have acceptable credit demonstrating timely payment of obligations. Credit scores of 640 or greater are typically considered as acceptable with minimal acceptable trade lines. Credit scores below 640 may require additional credit analysis.

Homes must be considered “modest” which includes a standardized square footage determination. This is 2,000 square feet (above grade living space only). If circumstances require a larger square footage, the applicant must work with processing staff to determine if an exception may be justified and requested.

Competitive fixed rates—33 year loan terms. In some cases 38 year term may be available.

SOME CLIENTS MAY QUALIFY FOR SUBSIDIZED PAYMENTS—Interest rate may be subsidized to as low as 1 percent for qualified applicants, thereby making payments more affordable. These homeowners could have their subsidy subject to recapture upon selling, or paying off, their home. Subsidy is also subject to cancellation if a borrower ceases to occupy the property.

Homes must be structurally sound and functionally adequate. Homes will be inspected and repairs may be necessary. Costs for repairs may be included in the loan up to appraised value.

Single Family Guaranteed Loans

This USDA Rural Development program is aimed at getting folks from the moderate income bracket into home ownership. The loan must be used to finance a home in an eligible rural area. No down payment is required. The loan can also be used to cover cost of repairs to a property, as well as cost incurred in closing the house. This loan will result in a 30-year fixed-rate mortgage.

Eligibility Requirements:

  • Regular, dependable income
  • U.S. citizenship, or legal resident status
  • Income that falls in the moderate bracket in the area the property is located.
  • Ability to demonstrate plan for repayment of the loan

The Property Must:

  • Be located in a qualified rural area
  • Meet HUD guidelines
  • NOT be producing other income
  • Be a home which resides on a permanent foundation
  • Be occupied by the owner

Are you ready to get qualified for USDA home loan in Payson Arizona? Please call Nathan Rufty at (623) 850-1210.


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