AZIDA USDA-RD Purchase Loan
Best For: First Time Homebuyers, Zero Down
USDA rural develpment option for Arizona residents seeking down payment assistance, offered by The Arizona Industrial Development Authority (AZIDA).
Program Description
This 30-year fixed USDA loan program can be combined with the HOME+PLUS Down Payment Assistance Program, which provides an additional 2% of the loan amount that will most likely be used towards closing costs.
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AZIDA USDA-RD Purchase Loan
Min. Credit Score
640
Min. Down Payment
0%
Max Loan Amount
$726,200
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- Up to 2% of the first loan amount available in closing cost assistance
- Available in all of Arizona
- Allows up to 45% DTI (Debt-to-Income)
- Must be repaid if home is sold before 36 months
- Subject to income limits
- Only available in USDA rural areas
- Requires the USDA funding and annual fees
Program Availability
AZIDA USDA-RD Purchase Loans are available in 1 state.
*Limited Availability: There are parts of Arizona that don’t qualify for a USDA Loan. To verify property or area eligibility, visit the official USDA website at https://eligibility.sc.egov.usda.gov/eligibility/.
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“AZIDA's zero down loan program for USDA homebuyers can help turn your homeownership dreams into reality with little to no money out of pocket!"
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
45.00%
Purchase Price Limit
No Limits
Income Limit
$103,500
Annual Household (1-2) Income
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- USDA loan program option from AZIDA
- Credit scores as low as 640
- Can be combined with "HOME+PLUS" down payment assistance
Additional Conditions
- HOME+PLUS down payment assistance comes in the form of a 3 year, no interest, no payment, deferred soft second mortgage, forgiven monthly at a rate of 1/36 over the term of the loan.
- Buyers must meet program guidelines, complete homebuyer education courses, occupy the property as a primary residence, and not exceed the income limits.
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class is required for this loan program.
Class Name: CreditSmart® Homebuyer U or Other
To qualify for the AZIDA HOME+PLUS program, at least one borrower must complete a pre-purchase home buyer education course from an approved provider and provide a Completion Certificate. The education can be taken online or in-person, but must be completed before closing. The certificate has no expiration date, and providers may charge a small fee for the course.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
No Mortgage Insurance
This program does not require Private Mortgage Insurance (PMI).
Type: USDA Gurantee Fee
The USDA loan program requires the borrower to pay a funding fee called the "Upfront Guarantee Fee" that is equal to 1.00% of the loan amount and can be financed into the loan.
Type: USDA Annual Fee
The USDA loan charges an annual fee based on the total remaining balance of the mortgage at a .35% rate.
Estimated Closing Costs: 2.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Grants, Bonds & 2nd Mortgages
There are certain programs that can be combined with this AZIDA USDA program to help cover all or a portion of your down payment and closing costs, or provide additional borrower benefits.
AZIDA HOME+PLUS 2% Assistance
|AZIDA USDAThe HOME+PLUS program provides up to 2% down payment and closing cost assistance for your Arizona home purchase.
Max. Loan Amount
$726,200
Min. Credit Score
640
Min. Down Payment:
0%
Special Offers
Occasionally, there are special offers that can be added to this mortgage program that provide additional benefits, such as a reduction in your federal taxes (mortgage credit certificates), extra cash for your down payment, and more.
Arizona Mortgage Credit Certificate (MCC)
CIC Tucson's Mortgage Credit Certificate (MCC) is an interest tax credit that is used to reduce your federal income tax responsibility each year. It is specifically for first time homebuyers and veterans and can be paired with most Arizona down payment assistance programs.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
IHFA Tax-Exempt RD Targeted
Best For: First Time Homebuyers, Lowest Rates, Zero Down
Tax-Exempt RD rural development loan program for targeted Idaho Counties with below market interest rates and down payment assistance options.
Pinellas County HFA HOME KEY USDA-RD Loan Program
Best For: First Time Homebuyers, Zero Down
USDA program for Pinellas, Pasco, and Polk County, FL residents seeking down payment assistance, offered by the Pinellas County HFA
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* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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