There are a variety of loan products and the 4 most commonly used are Conventional and Government Loans like FHA, VA, and USDA.
USDA Loans
Yes, the same department that grades beef, the Department of Agriculture, has a mortgage option. USDA Mortgages provide insured home mortgages for people who want to become home owners in rural areas. There is no down payment required and low monthly mortgage premiums. There is a “guarantee fee” paid to USDA and it is typically financed into the loan so it doesn’t have to be paid at closing.
The definition of “rural” is a little broader than you might think and many of Tucson’s suburbs have homes that qualify, including Red Rock and Sahuarita.
USDA loans do not have a maximum loan amount, but they do have a maximum income the household can have. It is a unique feature to this product.
If you are interested, give us a call for a map of USDA eligible areas and borrower qualifications.
