How to Have No Down Payment With a USDA Loan

You may have heard of a VA Loan, which allows veterans to buy a home without a down payment, but do you know about USDA loans? This program, which is backed by the U.S. Department of Agriculture, is another loan program that requires no down payment and is available to more people.

Here are the basic parameters of a USDA loan 👇

Location, Location, Location:

USDA loans are geographically based, meaning that the property must be located in a USDA-designated rural or suburban area. Surprisingly, many areas in the state meet these criteria, including parts of Pima County. If you’re looking to buy in the city, this option isn’t for you — but for those looking for land and privacy, a USDA loan might be the right fit.

Use this map to search eligible areas.

The light orange portion of the map below signifies what areas are not eligible for a USDA loan — but places like Bisbee, Tombstone, and Pinetop are.

There are income limits:

USDA loans are intended to assist families with moderate incomes. Because of this, there are income limits based on the number of people in the household. It's important to get with a qualified lender to ensure eligibility prior to starting your home search.

No down payment necessary:

Aside from VA loans, the USDA is the only other government entity that ensures loans with no down payment. A down payment is often one of the most significant barriers to ownership, which is why this program is so beneficial for homebuyers.

You must work with a trusted lender:

Because USDA loans are not as common as conventional or FHA, it’s important to connect with a trusted lender who will be able to guide you through the process seamlessly. Contact me for lender recommendations in Southern Arizona. 

If you’re looking to buy or sell anywhere in Southern Arizona, contact me at 520-275-3514 or julia@buyselltucsonhomes.com

Julia Van Valkenburg, Realtor

OMNI Homes International