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USDA Loans – the way to buy your new Goodyear, AZ home with 0 down

By
Real Estate Agent with West USA Realty

USDA Loans – the way to buy your new Goodyear home with 0 down

These days you hear and see a lot of misleading news on the radio, TV, and web about buying a home with 0 down.   Let me tell you, there really are only 2 options for true zero down mortgages available these days.  The first being the VA loan, but obviously this is limited only to men and women who have served our country.  The second, more accessible option is the USDA Rural Housing loan.  There are many advantages to the USDA loan besides offering zero down payment.  First of all, there is no mortgage insurance.  This is contrary to both FHA and Conventional loans which both require mortgage insurance if the borrower puts less than 20% down.  Keep in mind, the borrower will still have to come in with funds for closing costs, but even that can be gifted from a family member.  That brings me to the next USDA loan advantage.  If the home appraises above the purchase price, the difference can be used to finance in the closing costs and/or repairs! 

So what are the drawbacks or limitations of this loan?  The major drawback might not even be a drawback depending on how you look at it.  USDA loans won’t allow financing in just in any place.  It must be in an area that the USDA deems “rural”.  The word “rural” usually conjures up the image of a horse property in the middle of the barren desert.  Not true.  Beautiful master planned communities in Anthem, Goodyear, and Buckeye are all considered rural just to name a few.  The drawback is that the interest rates are slightly higher than FHA or conventional loans, but often times the payments can work out to be the same or even less because there is no mortgage insurance.  Lastly, USDA loans have income and debt-to-income limits. 

Interested to see if a property qualifies under the USDA program?  Go to the following link and see!

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@11

Interested to see if you qualify for USDA financing?

Call me:  480-444-7136

Email me:  Jim.Lee@onqfinancial.com

Visit me online:  www.jimleemortgage.com

In person:  16150 N. Arrowhead Fountain Center #260  Peoria, AZ 85382

AZ license BKBR-0115519

Robert Rauf
CMG Home Loans - Toms River, NJ

The USDA is a GREAT way for a buyer to buy a home!  Even in NJ we have huge areas that are USDA eligible!

Feb 10, 2011 05:19 AM