Home Loans Arizona - California - Nevada - Utah

What is USDA in Arizona Loan Program Do?

Similar to the VA and the FHA, the U.S. Department of Agriculture guarantees a government-backed mortgage option through its Rural Development program. These loans are tailored for those purchasing property in rural areas. The government-backed USDA program offers many of the same benefits of a VA loan, including 100 percent financing and less stringent credit qualifications. Like VA loans, USDA loans are for the purchasing of primary residences. But these loans also have some limitations and challenges.


USDA Loan Program offers 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 Arizona 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.

USDA income-eligibility in Arizona

• Primary Residence Only
• 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
• Property must meets all program criteria

How may USDA funds be used?

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

How do we get started?

To apply for this program, please contact a local mortgage lender.  Applications must be submitted through an approved lender.  If you are unable to find a participating lender, your state’s Guaranteed Loan Coordinator can help you find one.

For more information about USDA loans in Arizona please contact Nathan Rufty at 909-503-5600 .