How To Find USDA Loan Program Qualifying Areas In Arizona
Here Is How You Find Qualifying Areas For The USDA Loan Program
USDA-Loan-Program-MapsThe 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.
Income Qualifies Under The USDA Loan Income LimitsLeave a comment »
Do You Make Too Much Money To Qualify For A USDA Loan In Arizona?
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.