Home Loans California & Arizona

 
A USDA home loan in Wickenburg AZ is a zero down payment mortgage for eligible rural and suburban homebuyers. USDA loans are issued through the USDA loan program, also known as the USDA Rural Development Guaranteed Housing Loan Program, by the United States Department of Agriculture.

USDA home buying program is to promote homeownership in rural areas, especially for low-to-moderate income families.  By providing special homeownership programs, rural communities can develop faster and thrive.The way the program works is if you can meet certain qualifications you can get a home loan through the USDA directly or through a USDA lender (such as us). There are two types of USDA loans: 

  • USDA Guaranteed Loan – The guaranteed loan is the more common loan program and accommodates to many more ranges of income. In fact, in some areas, household incomes can be as high as $120,000.  This rural housing program is known by a few different names, such as the “502 USDA Guaranteed Mortgage”, “Single Family Housing Guaranteed Loan Program”, or just “USDA Guaranteed Loan”.  These all mean the same thing and are the same program.

  • USDA Direct Loan – The direct loan is for the lowest end of the income spectrum, and has a lot more limitations for who will qualify. It is for individuals or families with the very low income.  These loans are originated and funded by the USDA directly.  We do not issue these loans, nor does any Wickenburg AZ USDA lender.  You must apply through the Department of Agriculture.  Again, this is only for the lowest end of the income spectrum.
USDA purchase home loan in Wickenburg AZ

Wickenburg AZ USDA Home Loan Requirements

A great aspect of USDA loans is that the way you qualify is actually very different than other loans, such as conventional and FHA mortgages. While other programs require you to show more income, better credit, and more assets, the USDA is actually looking for those who have a harder time getting a loan. 

  • Credit – Minimum credit score of 620. Occasional exceptions are made, but this is the standard credit requirement.
  • Income – Income is limited to 115% of the median income in the applicable county. This means your household income can not be more than 15% above the median income for your county.  The income limits for USDA loans depends on your county and how many people live in your household.  The number of persons includes you, your spouse, your children, and anyone else living in your home.  The USDA has a very useful income eligibility tool which allows you to calculate your eligible income, make certain deductions, and then see if your income qualifies.
  • Owner Occupied – No rental properties are allowed.  You must occupy the home you want to buy with a USDA loan.  Another requirement is that the home be either a single family residence, or a condo.  Some USDA lenders in Wickenburg AZ will allow mobile or manufactured, but we do not offer USDA loans for these property types.
  • Property Eligibility – USDA loans are intended for rural development and therefore exclusively available for homes in rural and select suburban areas. You can look up properties by address on the USDA property eligibility search.  This tool also allows you to view a map with ineligible areas shaded in.   USDA loans are intended for rural development and are not available to finance a home purchase in larger cities.

So Where in Wickenburg AZ Can You Get a USDA Loan?

USDA loans are available throughout the majority of WA with its vast rural zones.  The only excluded areas which are not eligible are cities and larger towns with a population over 30,000.  If you want to buy a home in these urban areas, and are looking for another great option, consider an FHA home loan.  For the rest of Wickenburg AZ , including both remote areas and smaller towns, USDA loans are almost surely your best home financing option.  

To find out if the home or area you want is eligible, use the property search or give us a call and we can help you determine property eligibility.
Posted by Nathan Rufty on August 14th, 2019 1:01 PM
The Wickenburg, AZ USDA Rural Development home loan program allows home buyers the chance for affordable housing. This is especially true for areas of Wickenburg, Arizona, as the housing boom stopped here last, leaving many new homes vacant in areas that have not yet been annexed by cities or municipalities.

Wickenburg AZ USDA home loan

The USDA home loan program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may build, rehabilitate, improve or relocate a dwelling in an eligible rural area. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers.


How may funds be used in USDA Home Loans?
Funds backed by loan guarantees be used for:

  • New or existing residential property to be used as a permanent residence.  Closing cost and reasonable/customary expenses associated with the purchase may be included in the transaction
  • A site with a new or existing dwelling
  • Repairs and rehabilitation when associated with the purchase of an existing dwelling
  • Refinancing of eligible loans
  • Special design features or permanently installed equipment to accommodate a household member who has a physical disability
  • Reasonable and customary connection fees, assessments or the pro rata installment cost for utilities such as water, sewer, electricity and gas for which the buyer is liable
  • A pro rata share of real estate taxes that is due and payable on the property at the time of loan closing.  Funds can be allowed for the establishment of escrow accounts for real estate taxes and/or hazard and flood insurance premiums
  • Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating and cooling equipment as long as the equipment is conveyed with the dwelling
  • Purchasing and installing measures to promote energy efficiency (e.g. insulation, double-paned glass and solar panels)
  • Installing fixed broadband service to the household as long as the equipment is conveyed with the dwelling
  • Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways

Who may apply for USDA Home Loans in Wickenburg Arizona?
Applicants must:

  • Meet income-eligibility
  • Agree to personally occupy the dwelling as their primary residence
  • Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
  • Have the legal capacity to incur the loan obligation
  • Have not been suspended or debarred from participation in federal programs
  • Demonstrate the willingness to meet credit obligations in a timely manner
  • Purchase a property that meets all program criteria

Would you like more information about USDA Home Loans in Wickenburg, Arizona? Call Nathan Rufty at 909-503-5600
Posted by Nathan Rufty on February 14th, 2019 3:19 PM

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