How To Get The Maximum Arizona USDA Loan Size

You’ll be happy to know that the Arizona USDA Loan does not have a maximum loan size, which may be another advantage USDA has over it’s FHA counterpart.

The maximum loan size you can get will actually be determined by your qualifying repayment income.

Here is a simple 10 step process that you can use to ESTIMATE the maximum USDA Loan size you might qualify for.  Today’s post is pretty detailed and all about math, so you may need to review it a couple times.

And we’ll use some example numbers, say an annual income of $50,000 with $575 in monthly debt payments for things like credit cards and auto loans.

Step 1

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The USDA Loan vs The FHA Loan – Which Is The Best Loan?

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How To Get A USDA Loan For A Home With A Swimming Pool

I get this question quite a bit, probably because I’m in Arizona right?  And a pool is a great way to keep cool in our fairly hot summers.

But a lot of lenders will just say NO when it comes to using a USDA loan to buy a home with a swimming pool.  They probably shy away because a property with an in ground swimming pool not only has to get the local Rural Development office to approve the Guarantee in order to get a USDA Loan, but they also have to get what’s known as a POOL WAIVER from the NATIONAL Rural Development office.

Sounds like a lot of extra work, doesn’t it?

The reality is that it isn’t that bad.

Here’s how to get a USDA Loan on a home that has an in ground swimming pool.

The USDA Loan has some additional calculations that help determine the value of a home with a swimming pool.  They do this because the USDA is not in the business of financing luxury items, and an in ground pool could be considered just that.

So we need to have the appraiser provide a value for the home AS-IS, with the pool.  And we also will need the appraiser to provide a value for the home as if it did NOT have a swimming pool.

The appraiser will basically create a duplicate appraisal.  One shows comparable properties WITH swimming pools, and the other will show comparable properties without swimming pools.

And no, they don’t charge you for two appraisals.

So as long as the value without the pool supports the sales price, and it usually does, then you should qualify for the Pool Waiver.

I hope you found this Arizona Home Loan tip useful and would love to hear your comments.

To find out if you qualify for a USDA Loan call (520) 225-0380 or click on the Get Started on USDA tab above and ask for a quote.  If you want to go ahead and get your application in, you can fill out my Arizona Home Loan Application Online here.
Similar Posts:The 2nd Factor the Lender Looks For When You Apply For A USDA Rural Development LoanHow To Get A USDA Loan In Arizona Closed FAST!USDA Guidelines – Loan limitationsUSDA Rural Development Bank Owned Homes For SaleUSDA Loan Program Out Of Funds Again? You Must Be Kidding..

Tags: Arizona Home Loan, Swimming Pool, usda loan, USDA Qualifying

This entry was postedon January 21, 2011 at 2:00 pm. You can follow any responses to this entry through the RSS 2.0 feed.You can leave a response, or trackback from your own site.

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What Credit Score Does The USDA Loan Require?

People ask me all the time what credit score is needed to get a USDA loan to buy a house in Arizona with absolutely Zero Down Payment.  There are actually a pretty good variety of answers to this question.

Before we open the curtain on the USDA Loan and show you the credit score options, let’s take a look at what a credit score is.

There are three credit bureaus and each has a detailed history of an individual’s credit.  They are Trans Union, Equifax and Experian.  They each have their own super secret, mathematical model that they use to create and formulate a person’s credit score.  It’s basically like your credit history goes into the big credit machine, and out comes a three digit number.

That number is a score that lenders will use to determine your level of risk.  So a lower score means a higher risk and a higher score means a lower risk.

So, you’ll have a score from Trans Union, from Experian and from Equifax.  The score used to qualify for a loan is the middle of the three scores.  So let’s say you have a 648 from Trans Union, a 602 from Experian and a 623 from Equifax then you middle score would be the 623.

Now, the USDA Loan does not have an actual minimum credit score, can you believe that?  But the lenders who fund the USDA loans will generally require a minimum middle credit score of 620 and the USDA does advise that lenders should not approve loans with less than a 580 middle credit score.  Some lenders will go with a lower score, say down to 580 or so, but be prepared to pay significantly more in closing costs with such a low score.

NOTE:  Our company requires a middle credit score of at least 620 to fund a USDA Loan.

If your credit score is standing in your way from qualifying for a USDA rural home loan, then be sure and get a free copy from annualcreditreport dot com and verify that the information is all correct.  I wrote a post last week on some tips you can use to improve your credit score also.

So in summary, as a general rule if you have a middle credit score of 620 then you will have a very good chance of getting approved for a USDA rural home loan.

I hope you found this Arizona Home Loan tip useful and would love to hear your comments.

To find out if you qualify for a USDA Loan call (520) 225-0380 or click on the Get Started on USDA tab above and ask for a quote.  If you want to go ahead and get your application in, you can fill out my Arizona Home Loan Application Online here.
Similar Posts:USDA Rural Home Loans – Credit Score Requirements3 Things The Lender Looks At When You Apply For A USDA Rural Development Home LoanSimple Tips To Optimize Your Credit Score For The USDA LoanHow To Get A USDA Loan If You Don’t Have Any CreditFannie Mae Just Helped Make The USDA Loan Program Cheaper And Easier

Tags: Arizona Home Loan, Credit Score, Minimum Credit, usda loan

This entry was postedon January 24, 2011 at 2:41 pm. You can follow any responses to this entry through the RSS 2.0 feed.You can leave a response, or trackback from your own site.

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How To Find Out If Your Income Qualifies Under The USDA Loan Income Limits

While the USDA Loan does not have a maximum loan size they do have a maximum qualifying income limit.

People ask me all the time, what are the income limits for the USDA Loan.  So let’s take a moment and define really quickly what an income limit is.  The USDA defines income limit as the Adjusted Household Annual income, that’s it.

Did you catch that?  There is an important point there that many people naturally overlook, it’s the Household Annual Income.

What that means is that the USDA Loan Program will look at the total income coming into the household over the entire year.  If you have a son or daughter or parent, friend or spouse living in the household that will not be on the loan; their annual income will count against the limit.

What are the income limits based on for USDA Loans?

They are based on geographic region and number of people in the household.  The different groupings are 1-4 people, 5-8 people and any number over 9.

The majority of Arizona has a USDA Loan Income limit of $74,050 for a 1-4 person household.  For the 5-8 person household the income limit is generally $97,750.  However certain areas allow up to $76,600 for the 1-4 person household and up to $101,100 for the 5-8 person household.

You can find the most current chart of income limits on my USDA Loan Income Limits post.  Just select the category, INCOME QUALIFYING and you’ll get the charts as well as information on allowable deductions.

I hope you found this Arizona Home Loan tip useful and would love to hear your comments.

To find out if you qualify for a USDA Loan call (520) 225-0380 or click on the Get Started on USDA tab above and ask a question if you like.  If you want to go ahead and get your application in, you can fill out my Arizona Home Loan Application Online here.
Similar Posts:USDA Loans 2010 USDA Income Limit UpdateUSDA Loans Qualifying Income Limits UpdateHow To Get The Maximum Arizona USDA Loan SizeThe USDA Loan – The Hot Shot 0% Down Loan You Really Want To Know AboutUSDA Rural Home Loan Qualifying and Income Limits

Tags: Arizona Home Loan, Income Limits, Loan Amount, Usda Loans

This entry was postedon February 2, 2011 at 11:31 am. You can follow any responses to this entry through the RSS 2.0 feed.You can leave a response, or trackback from your own site.

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How To Find USDA Loan Program Qualifying Areas In Arizona

The USDA Loan Program is restricted to certain geographic areas, and one of the questions I hear a lot is how can I tell what areas are eligible for the USDA Loan, where should I be looking to buy a home?

Let’s take a quick look at what the USDA defines as an eligible area.

The USDA says that to be eligible a property must be in a rural community.  Generally, these are communities of less than 10,000 people, but the USDA does make exceptions.  Certain areas between 10,000 and 25,000 in population are considered rural based on their distance from urban areas.

So it comes down to population and how far away from an urban area you are.

So here is a list of Urban areas that are NOT eligible; Flagstaff, Bullhead City, Lake Havasu City, Prescott, Phoenix, Tucson, Yuma and Sierra Vista.  Now be sure to keep in mind that their suburbs may be A-Okay.

Did you know that Arizona has 15 counties?  And right now 7 of those counties don’t have any eligibility restrictions.  That means that every single geographic part of that county qualifies for the USDA Loan.

On the USDA Rural Maps tab you can find a constantly updated list of USDA qualifying areas.  Once there you will see specific areas that you can quickly look at and see the eligible areas.

I hope you found this Arizona Home Loan tip useful and would love to hear your comments.

To find out if you qualify for a USDA Loan call (520) 225-0380 or click on the Get Started on USDA tab above and ask a question if you like.  If you want to go ahead and get your application in, you can fill out my Arizona Home Loan Application Online here.
Similar Posts:Queen Creek Arizona USDA Rural Development Map now availableUSDA Rural Development Bank Owned Homes For SaleThe 2nd Factor the Lender Looks For When You Apply For A USDA Rural Development LoanHow To Find Out If Your Income Qualifies Under The USDA Loan Income LimitsThe USDA Loan – The Hot Shot 0% Down Loan You Really Want To Know About

Tags: Arizona Mortgage, usda loan, USDA Property, USDA Qualifying

This entry was postedon February 3, 2011 at 1:01 pm. You can follow any responses to this entry through the RSS 2.0 feed.You can leave a response, or trackback from your own site.

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Fannie Mae Just Helped Make The USDA Loan Program Cheaper And Easier

I’ve been helping people for years to get the cheapest, easiest loan possible to buy a home in Arizona with the USDA Loan Program.  Now, in a recent article in USA Today it is reported that Fannie Mae and Freddie Mac are raising their loan costs to home buyers.  This will make the USDA Loan Program even cheaper than it is now.  Fannie and Freddie fund home loans that are known as Conventional loans and have been the largest supply of home loans forever.

While the USDA Loan Program has limits on the fees that can be charged, Fannie and Freddie are introducing new fees to be charged to consumers based on your credit score and how much you are putting down.

If you plan to put more than 25% down and have a credit score higher than 720, you won’t notice a difference in the new Fannie and Freddie price hikes.  Everyone else will see a substantial price increase, only if you apply for conventional financing.

The Fannie Mae & Freddie Mac price increases go into effect on April 1, 2011.

Just to give you an idea, for someone buying a $150,000 home with 5% down and a 620 middle credit score, Fannie Mae will charge that borrower an extra $4,631 at closing once April 1st hits.

With the USDA Loan Program, not only do you keep that 5% down payment in your bank account but you get to keep the extra fee the Fannie Mae would charge you.

Proof once again that the USDA Loan Program is the cheapest loan available to buy a home in Arizona.

We are seeing the use of the USDA Loan Program increase in popularity all over Arizona, especially in Sahuarita, Anthem, Buckeye, Maricopa and Queen Creek.

I hope you found this Arizona Home Loan tip useful and please, leave a comment below.

To find out if you qualify for a USDA Loan call (520) 225-0380 or click on the Get Started on USDA tab above and ask a question if you like.  If you are ready to go ahead and get your application in, you can print out my Arizona USDA Loan Application here.
Similar Posts:USDA Loan Guidelines – Charges and fees by LenderHow Much Can I Borrow WIth A USDA Rural Home Loan?Simple Tips To Optimize Your Credit Score For The USDA LoanWhat Credit Score Does The USDA Loan Require?USDA Rural Home Loans – Credit Score Requirements

Tags: Fannie Mae, Freddie Mac, Loan Costs, USDA Loan Program

This entry was postedon February 8, 2011 at 2:06 pm. You can follow any responses to this entry through the RSS 2.0 feed.You can leave a response, or trackback from your own site.

Posted in USDA Advantages by pauldunn No Comments Yet

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