A Startling Fact About The USDA Loan And The 2010 Census USDA Loan: Get It While You Can

A Startling Fact About The USDA Loan And The 2010 Census USDA Loan: Get It While You Can

USDA-Loan-Tucson-AZOver the last couple of years the USDA Loan has become the hottest deal in town. Why? Because it helps low to moderate income families buy a new or existing home with no money down. And in today’s current real estate market it is helping get buyers in the market who may not have been able to buy without the use of the USDA Loan; and it is helping move real estate in areas like Queen Creek, Sierra Vista, Anthem and Marana that may have sat vacant without the availability of the USDA Loan Program.

While loan programs have been changing over the last several years and tightening guidelines, the USDA Loan still remains the simplest loan to get and it’s biggest restriction has to do with the geographical areas that qualify for this loan.

Qualifying areas are based on the US Census Data by using an area’s population to determine eligibility. Currently areas in Marana and north of Tangerine Road in Tucson, are still eligible for the USDA Loan Program; however once the USDA restructures it’s eligibility maps based on the 2010 census data, those areas may no longer be eligible.

When they restructure the qualifying areas is unknown, but it does look like the population growth in those areas will make them ineligible for the USDA Loan in the future. Now when that does happen, the next low down payment would be the FHA loan which currently only requires a 3.5% down payment (and also has a monthly mortgage insurance payment).

So for anyone looking to buy a new or existing home with no down payment and in an area close to an urban area, you may want to take a look at getting pre qualified for a USDA Loan now.

Apply for a USDA Loan Online Now: Loan Application
Areas in and around Tucson most likely to be impacted:

Fannie Mae Just Helped Make The USDA Loan Program Cheaper And Easier
Fannie Mae Is Making Our USDA Loan Program Much Cheaper
USDA Loan Program Fannie Mae LLPAI’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.

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.

Apply for a USDA Loan Online Now: Loan Application
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.

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.

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