USDA Loans

Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.

Eligibility: Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.

Approved lenders under the Single Family Housing Guaranteed Loan program include:

• Any State housing agency


• Lenders approved by:




• HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities


• the U.S. Veterans Administration as a qualified mortgagee


• Fannie Mae for participation in family mortgage loans


• Freddie Mac for participation in family mortgage loans




• Any FCS (Farm Credit System) institution with direct lending authority


• Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs

There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.

Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan.

100% Financing is Back!

Although the 100% financing/Zero down payment mortgage has gone the way of the dinosaur, this valuable mortgage program is now available once again for designated areas of Arizona.

What kind of loan do you get? How about a 30 year fixed rate where you need not worry about the rate going up during the life of the loan. There are no mortgage insurance and no minimum credit score requirements either. Other benefits include the substitution of "non-traditional" credit when traditional credit is not available. What that basically means if you have no or little credit history, you may be able to submit "alternative" sources of your repayment history such as 12 months of your utility bills payments and rental payments.

And by the way, this program is not limited to first time home buyers, so anyone can apply!

Pinal County Down Payment Assistance, Bond Program

Did you know that if you are a first-time home buyer in Pinal County, Arizona, you may be able to obtain down payment assistance for as much as $20,000?

Sounds too good to be true? Well, it is indeed very true. However, not every Pinal County home buyer is eligible. And you need to understand the true definition of "first-time home buyer" as it applies to this program.

Firstly, first-time home buyer as it pertains to this DPA (down payment assistance) program means that you must not have owned a home within the past 3 years. How the heck would anyone be able to confirm that? Simple. The lender will require that you provide your last 3 years of federal income tax returns.

You must also satisfy additional eligibility requirements including falling within specified family household income limits, as well as not exceeding specified purchase price limits.

And did you also know that an interest rate reduction bond program is available to Pinal County, first-time home buyers? The eligibility requirements for this program are the same as for the down payment assistance program.

There are also a few other resources out there including Pinal County Down Payment Assistance and Pinal Bond Program.