The magical USDA loan in Arizona

Thanks to the magic of the USDA Home Loan you can buy a home in Arizona with no money! The qualifications are similar to the FHA Loan, but an FHA Loan has 3.5% down requirement from the buyer where a USDA Loan has no money down.

Just because you don’t need a downpayment does not mean you don’t need any money. You still need to pay for a home inspection and appraisal and traditional closing costs. Although you can try to get the seller to contribute to the traditional closing costs for you.

Not every home in the Phoenix and East Valley area are going to qualify. This is a rural housing loan so the house will need to be in the qualifying locations. One issue is with the new Census data, many areas which now qualify for a USDA loan will not shortly when the areas are reevaluated. The population growth in many of the outlying towns is going to make them ineligible.

So while the USDA loan is an option for some people, changes may make it an endangered species in the Phoenix metro area very soon.

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