USDA- New Eligible Areas

USDA HOME LOANSUSDA has made changes to the eligible areas and it has affected some of our rural areas in Arizona. Please take a look at the map below.
USDA- New Map Area Of Eligible Areas

Rural Area Changes effective 10-1-14


USDA is a wonderful loan program for our home buyers purchasing a home in the rural areas of our state.  It allows 100% financing with no PMI (Private Mortgage Insurance).   The participants using this program must qualify based upon their income as well as where the property is located.  The new map is now on the USDA website.

Sometimes called a “Rural Housing Loan” or a “Section 502” loan, today’s USDA financing isn’t just for farms. Because of the way the USDA defines “rural”, there are plenty of exurban and suburban neighborhoods nationwide in which USDA loans can be used.

Home buyers who buy a home in a qualified USDA area, and who meet USDA income eligibility requirements, can take advantage of the USDA’s low mortgage rates and a program which required no down payment whatsoever.

To help you understand how the USDA Home Loan operates, here are some details that most consumers like to know about:

  • Debt to income: Lenders will take a look at your debt-to-income ratio, too. Your house payment consisting of PITI (which stands for mortgage principal, interest, taxes and insurance, HOA fees) must be less than 29% of your monthly income. All additional monthly debt can be no more than 41% of your income.
  • Credit score: Here at AmeriFirst Financial, a  score of 640 or higher is required.
  • Overall income: There are maximum income requirements that vary by state and county, and by family size. Typically, adjustments are made for disabilities, dependents and so forth.
  • You must also be 18 or older, and be a US citizen, national or qualified alien

There are other USDA qualifying criteria, too, including :

  • The subject property must be a primary residence
  • The buyer must be at least two years seasoned from a bankruptcy discharge
  • The buyer may not own another home within commuting distance of the subject property




Are you wanting to explore the USDA Home Loan.  Check out the links in this blog and then for further information, you are invited to contact Karen Jones directly at 480-339-1577 for your Action Plan.  Karen is a licensed Senior Mortgage Loan officer serving Arizona and California home buyers.

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AmeriFirst Financial, Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ  85203 (NMLS # 145368). 1-877-276-1974. Copyright 2018. All Rights Reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations apply. Click Here for Licensing Information. The services provided by Karen Jones are not a condition, nor do they create any obligation for any form of remuneration for any real estate settlement service related to any referral.  The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. Karen Jones does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. Karen Jones will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.