USDA Loans Remain Unchanged

Many people may not have even heard of a USDA loan, but they are a great option for many entry-level buyers looking for a low down payment option. In fact, outside of VA loans, the USDA loan program is the only widely available one which requires 0% down payment. Another great feature for USDA loans is their lower mortgage insurance premium when compared with the more widely used FHA loans. There are some restrictions to USDA loans however and these include: income limitations, the purchase must be for a primary residence (actually owning any other real estate typically disqualifies a purchase), and there are geographic restrictions as well. Around the Tucson area some of the notable geographic areas that are eligible are Vail, Sahuarita, Rita Ranch, and anything north of Tangerine. Yes, this includes Dove Mountain & Rancho Vistoso in addition to communities such as Blackhorse Ranch & Eagle Crest.

There aren’t too many drawbacks to the USDA loan program if you meet the eligibility requirements. In fact the only notable one would be that the program can take approximately 10 additional days to fund as USDA reviews each application and must sign off on the loan as well. Much like FHA or VA loans, there is a funding fee which is paid at the time of origination, however this can be financed into the loan so that the buyer doesn’t have to pay it with cash at closing. If you’re interested in purchasing in one of the qualifying outlying areas, then you owe it to yourself to investigate USDA loans. Please contact Team Woodall for more information about this phenomenal loan program.

Stephen Woodall
REALTOR, GRI @ Long Realty Company
Stephen has made real estate his full-time career and passion since 2008, primarily specializing in the Foothills & the Northwest Tucson areas of Oro Valley and Marana. He is a multi-million dollar producer, representing both sellers & buyers. Stephen has tremendous experience in new home sales, listing & selling primary residences, listing & selling vacant land, listing & selling luxury homes, investment properties, rentals, and real estate development parcels.

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